NEW DELHI: Diesel prices have gone down by Rs 3.566 per liter The plunge in international oil prices has almost doubled India’s highest fuel consumption.

With crude oil prices touching the lows of the last four years, the excess recovery or profit on diesel sales has risen from Rs 1.90 per liter in the first half of October to Rs 3.56 per liter at present, an official statement said.

The state-run fuel retailer posted its first profit in the second half of the current month of September with a modest over-recovery of 35 paisa in the diesel business. 10 Prices spiked to Rs 1.900 per liter in the first half of the month to Rs 3.56 per liter currently.

Excessive recoveries or profits would naturally lead to price cuts to bring retail prices in line with costs. However, with the electoral law coming into effect in the National Assembly polls, this has not been reduced.

With the results of the Maharashtra and Haryana assembly elections announced on Sunday, the model code of conduct will be repealed.

Sources said the Election Commission did not approve the tax cuts as lowering tax rates on government-controlled goods could have been seen as a measure to attract voters.

On the other hand, gasoline and oil are deregulated products and oil companies enjoy pricing freedom. As a result, oil companies have followed the international trend of six rate cuts in recent months. Yesterday, the rate fell to $1 per liter.

In the London market, benchmark Brent crude fell $1.06 down 1.3% to $82.72% a barrel, its lowest level since November 2010.

Since September 16, the decline in international oil prices has led to a lack of recovery of diesel or the disappearance of the gap between the retail price and the cost of imports, with an excess recovery of 35 paisa per liter. On October 1, the recovery price was Rs 1.90 per liter, but now it is Rs 3.56 per liter.

However, the recovery rate for kerosene and LPG is still inadequate. “For PDS Kerosene and Domestic LPG, the recovery shortfall for the second week of the month of October 2014 will be Rs. 31.22 per liter (Rs. 32.677 per liter last month Rs. 404.64 per bottle (Rs.) Rs 427.82 per bottle), the statement said.

IOCC state-run fuel retailers, BPCL and HPCL suffered a loss of about Rs 1.39 crore per day in sales of PDS kerosene and domestic LPG. This is reportedly lower than the daily recovery gap of Rs 1.56 billion in the last two weeks.

Petrol and diesel prices are adjusted by oil companies on the 1st and 16th of every month based on the average international oil prices and exchange rates of the last two weeks. LPG and kerosene are run once a month.