The prices of petrol on the pump stations across the country have touched a yearly low on back of the falling crude oil prices.
The prices of petrol in Bengaluru on Christmas stood at Rs 70.32 per litre, a drop of 17% from the peak prices on September 17, when it touched Rs 84.84 per litre.
On the other hand, the diesel prices in the city also stood at an annual low of Rs 64.15 a litre.
Similarly, in the financial capital Mumbai, the pump prices at the petrol stations stood at Rs 75.38 a litre, a drop of over 17.5% from the peak prices of Rs 91.39 a litre on October 4 this year.
In national capital Delhi, the prices at its lowest since December 26, 2017. The prices in the city stood at Rs 69.71 a litre, down 17.1% from its peak of Rs 84.06 a litre on October 4.
The drop in the pump prices has been fueled mostly by a steep decline in the prices of crude oil in the global markets.
The crude oil prices have are at an 18-month low in the international markets, owing to the supply-demand mismatch. At the close of trade on Monday, the benchmark Brent crude was trading at $50.73 a barrel, its lowest since July 2017. On July 25, 2017, the Brent crude was trading $50.20 a barrel. The crude prices have crashed by 41% in past two months after they touched a four year high of $86.29 a barrel on October 3 this year.
Analysts attribute the steep drop in the crude oil prices to the supply-demand mismatch. The shale oil production in the US has been at an all-time high despite the fact the demand has been remaining stagnant.
Despite a steep decline in the crude price, the pump prices have fallen by only half the rate of the Brent crude, owing to the multiple taxes imposed by both centre and state on the fuel.
According to estimates, the basic cost of fuel after refining cost is not more than Rs 33 a litre, while the rest of the amount goes in as taxes to governments. The various kinds of taxes imposed on petrol include excise duty, road cess as charged by central government and value added tax by the state governments.