Diesel prices have been cut by 20 paise on Friday, marking the third straight day of reduction. In total, diesel rates have been slashed by 60 paise this week. However, petrol prices across the country remain unchanged over a month.

The drop in diesel prices comes at a time when international crude oil prices have weakened sharply due to concerns over demand amid surging Covid-19 cases in some parts of the world.

In Delhi, diesel is retailing at Rs 89.27 per litre while it has reduced to Rs 96.84 in Mumbai. The price in Kolkata has come down to Rs 92.32 per litre, and it is also retailing below Rs 94 in Chennai after a long time. Despite the 60 paise cut, diesel prices remain above Rs 90 per litre in most major cities.

Read | Diesel prices cut for 2nd day, petrol unchanged despite sharp fall in global oil rates

On the other hand, petrol continues to retail at Rs 101.84 per litre in the national capital and nearly Rs 108 per litre in Mumbai. It is retailing over Rs 102 in Kolkata and at Rs 99.47 in Chennai. There are at least 25 cities where petrol price remains over Rs 100 per litre.

While state-run oil manufacturing companies (OMCs) have started reducing diesel prices, it is not yet clear why petrol prices remain static.

But experts feel that reducing diesel prices is more important at the moment as it would directly help in lower prices of several other commodities and help control inflation.

State-run OMCs are likely to continue reducing diesel prices in the near future as high prices have had a negative impact on the economy for a prolonged period. There are chances that oil companies would soon start rationalising petrol prices as well.

Explained | How record fuel prices are making life difficult for Indians

However, the central government has maintained that it would not cut excise duty on petrol and diesel. It may be noted that excise duty and other taxes constitute the biggest portion of taxes collected on fuel.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the government is aware of the problems citizens are facing due to high fuel prices and is taking all possible steps to resolve the problem.

Puri, however, blamed the previous Congress-led UPA government for the current fuel rates and advised state governments to lower fuel prices, citing Tamil Nadu’s move to reduce taxes on petrol.

Fuel rates in Indian cities: