Petrol price cut by `2 per litre; diesel by 50 paise

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August 31, 2015

New Delhi: Petrol price was on Monday cut by `2 per litre and diesel by 50 paise a litre, the third reduction in rates this month on fall in global oil rates.

Fuelling at a petrol pump near Pragati Maidan in New Delhi on 17 May 2010. Photo: Ramesh Pathania/Mint

August 31, 2015

New Delhi: Petrol price was on Monday cut by `2 per litre and diesel by 50 paise a litre, the third reduction in rates this month on fall in global oil rates.

Fuelling at a petrol pump near Pragati Maidan in New Delhi on 17 May 2010. Photo: Ramesh Pathania/Mint

The new rates will be effective Tuesday midnight, said Indian Oil Corp. Ltd (IOC), the nation’s largest fuel retailer. Price of petrol in Delhi has been cut by `2 per litre, including local levies, and will cost `61.20 per litre from Tuesday as against `63.20 currently. A litre of diesel will cost `44.45 as compared to `44.95 currently.

Oil firms had last cut petrol price by `1.27 a litre and diesel by `1.17 per litre with effect from 15 August. Prior to that, rates of petrol were cut on 1 August by `2.43 a litre and that of diesel by `3.60. “Since the last price change, there has been a decrease in international prices of both petrol and diesel. However, Rupee-US Dollar exchange rate has depreciated during this period. The impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” IOC said in a statement.

Last month, the price of petrol was cut on 1 July by 31 paise per litre and diesel by 71 paise a litre. This was followed by a `2 per litre cut in rates of both petrol and diesel, excluding local sales tax, from 16 July but consumers in Delhi were deprived of the benefit as the Delhi government raised VAT. As a result, petrol price in Delhi went up by 28 paise a litre after hike in VAT or sales tax on the fuel from 20 to 25%. Rates of diesel, on which VAT was raised from 12.5% to 16.6%, saw a smaller reduction of 50 paise per litre.

“The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” IOC said.


Courtesy: Live Mint