Petrol price cut by Rs 2; no change in diesel rate
Petrol price was today cut by Rs 2 per litre with effect from midnight tonight, the steepest reduction in rates in nine months.
While petrol price has been cut by Rs 2 per litre, excluding local sales tax or VAT, there will be no change in diesel rates.
After including VAT, the reduction in price of petrol in Delhi comes to Rs 2.40 per litre and the fuel will from midnight tonight cost Rs 68.34 per litre as against Rs 70.74 currently.
It was expected that oil firms will also effect the monthly hike of 40-50 paise per litre in diesel rates but they deferred the decision apparently to save the government from trouble in Parliament.
When oil firms had last hiked petrol price on March 2, the Opposition parties had disrupted one full day’s proceedings.
The cut in petrol price follows two rounds of hike in rates since February. Petrol price was hiked by Rs 1.50 a litre on February 16 and then by Rs 1.40 per litre from March 2. Both the increases were excluding local VAT.
The reduction in rates was possible as international oil prices have eased. While the slide in international prices of crude oil from USD 112.73 per barrel to USD 107.41 enabled reduction in petrol prices, it also helped lower losses on diesel sales.
Losses on diesel have come down to Rs 8.64 per litre from Rs 11.26 at the beginning of the month, according to Indian Oil Corp (IOC) which announced the price revision.
Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight.
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