Fuel prices fell on Friday after remaining unchanged for two consecutive days across all major cities. The prices fell in the range between 20-22 paise.

In Mumbai, petrol and diesel prices were at Rs 74.10 per litre and Rs 65.34 per litre, respectively.

According to the Indian Oil Corp data, petrol prices in Kolkata, New Delhi and Chennai were at Rs 70.58 per litre, Rs 68.44 per litre and Rs 71.01 per litre, respectively, while diesel stood at Rs 64.21 a litre in Kolkata, Rs 62.44 a litre in Delhi and Rs 66.91 a litre in Chennai.

Petrol prices, which have been on a decline since October, reached their lowest level of 2018 on Monday. Diesel rates were at their lowest since March-end.

State-owned fuel retailers have stopped absorbing a government-mandated cut of Re 1 a liter in their marketing margins on the sale of petrol and diesel due to a steep fall in global oil prices, Reuters reported, citing sources.

This is reflected, at least in part, by the relative difference in the recent declines of fuel prices and global benchmarks. The price of Brent crude, Singapore gasoline and Arab Gulf Diesel have declined between 37-40 percent since October 1 while petrol and diesel prices have been reduced by about 17-18 percent, according to Reuters calculations.

International Brent crude futures were down 38 cents, or 0.7 percent, at $55.57 a barrel on Friday.

In October, the finance ministry had cut its production tax on the two fuels by Rs 1.50 a litre and had asked state-owned fuel retailers to reduce their marketing margins by Re 1 a litre to insulate consumers from a surge in global oil prices at the time.

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.

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

(With inputs from agencies)

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First Published:Jan 4, 2019 7:25 AM IST