Fuel prices fell for the sixth consecutive day on Tuesday, with petrol at Rs 75.90 per litre and diesel at Rs 67.81 per litre in Mumbai.

According to the Indian Oil Corp data, petrol prices in Kolkata, New Delhi and Chennai were at Rs 72.37 per litre, Rs 70.31 per litre and Rs 72.92 per litre, respectively, while diesel stood at Rs 66.55 a litre in Kolkata, Rs 64.82 a litre in New Delhi and Rs 68.41 a litre in Chennai.

Oil prices remained on shaky ground on Tuesday after sliding by 3 percent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.

The deal between the Organisation of the Petroleum Exporting Countries (OPEC) and its allies to cut down on the global oil supply is likely to raise domestic fuel rates. However, the rates will be below record levels as oil producers will check the unreasonable jump in crude rates to avoid demand destruction, The Economic Times reported, citing analysts and industry executives.

As per the country's dynamic pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee.

The slide in domestic fuel prices comes in line with the recent decline in crude oil prices due to high supplies. Global crude oil prices have lost nearly 30 percent from the peak of $86.70 a barrel hit on October 3, 2018

Retail pump price is calculated after adding central excise duty, dealers commission and value-added tax (VAT) to the base price.

While excise duty is fixed at Rs 17.98 per litre in case of petrol and Rs 13.83 per litre in diesel and do not change with any variation in base price. The incidence of VAT in most states changes as the levy is ad valorem or a percentage of the total of the base price plus central excise duty.

(With inputs from agencies)