Petrol and Diesel prices in India depend on the International crude oil prices as both were deregulated in India. It also depends on Rupee-Dollar conversion rate simultaneously. Recently we saw fall in Rupee value against dollar but still a reduction in price of fuel gives us clue that the International crude oil prices came down drastically.
It is mentioned that crude oil prices reached to around $40 per barrel last week. This is due to the increase in supply combined by slow demand in US.
Petrol saw its third consecutive fall since July 16th 2015 where it stoods at 66.9/litre while diesel saw its sixth consecutive fall since May 16th 2015 where it stood at 52.28/litre. These reductions in fuel prices may create positive sentiment among customers to buy vehicles. Automobile manufacturers will be benefited if this trend continues in the coming months as festive season is approaching where more number of sales are expected to happen.