Petrol price further cut by 78 paise a litre

Petrol price further cut by 78 paise a litre

State run oil marketing companies on Wednesday cut petrol prices by Rs 0.65 a litre, excluding State taxes from midnight to night. After including the State taxes the effective price comes to Rs 0.78.

Subsequently, petrol in Delhi will now cost Rs 65.64 per litre as against Rs 66.42 a litre at present. Also in Mumbai it will cost Rs 70.65 a litre, down by Rs 0.82 per litre.

Though the reduction is much lower than the anticipated Rs 1 per litre, it is the second reduction in two weeks. The last cut was Rs 2.22 per litre effected from November 16. Now petrol in Delhi will cost Rs 65.64 per litre against Rs 66.42 a litre currently.

Review of international oil prices & INR-USD exchange rate of relevant fortnight for prices effective 01.12.11 brings out a further downtrend in international oil prices and a further weakening of the exchange rate, said a statement from Indian Oil Corporation (IOC)

“Thus, while MS international prices have moved down significantly from $116/bbl approximately to $109/bbl approx., the exchange rate has deteriorated from Rs 49.32/USD to Rs 51.50/USD. The combined impact of the two factors is an over-recovery of Rs 0.65/litre. It has, therefore, been decided to revise the MS prices downward by Rs 0.65 / litre (excluding state levies) w.e.f. 1st Dec, 2011,” added the statement.