(Image source from: Diesel prices to go down for the first time in seven years})

For the first time in seven years, diesel prices are to come down, thanks to the steep fall in international crude rates.

For a fourth straight session, Brent crude eased on Tuesday, with rates standing near a 16-month trough below $100 a barrel.

Thanks to continuous output from strife-torn countries such as Iraq and Libya and the shale oil boom in the United States have lessened supply side risks that has led to a drop in diesel rates. Also, slow growth in western economies and China have raised demand concerns.

Brent was trading down 33 cents at $99.87 as of 12.30 p.m. On Monday, prices slid below $100 for the first time in almost 15 months and hit a low of $99.36 - the weakest since May 1, 2013.

Also, the recent gains in rupee value has helped to bring down the cost of crude. India imports three-fourth of its oil needs and higher rupee value helps lower the import bill.

The latest slash in diesel rates will not only benefit the consumers driving diesel cars, but also lower inflation in the economy.

Since January 2013, diesel prices have been on the rise, with rates being hiked by nearly 50 paise a litre every month. Over the last 20 months, diesel prices have been hiked 19 times and for Rs. 11.81 per litre.

In contrast, petrol prices have been pretty much irregular. Last month, petrol prices were cut three times, but regularized diesel prices were increased.

Diesel rates was last raised on August 31 after which the under-recovery, or the gap between retail selling price and the cost of imports, on diesel dipped to an all-time low of 8 paise a litre.

AW: Suchorita Choudhury