Petrol prices slashed by Rs. 3 per litre; highest cut in 5 years

Petrol prices slashed by Rs. 3 per litre; highest cut in 5 years

Mangaloretoday/NDTV

New Delhi, April 30: Oil companies on Tuesday reduced the price of petrol by Rs. 3 per litre effective midnight, without taxes, the highest cut in over five years on falling international prices.

This is the fourth cut in petrol prices since March. Oil firms review the price of petrol every two weeks. While petrol price has been deregulated since June 2010 and the price is market determined, the government still controls the price of diesel, and allows only minor revisions.

 

Following the rate cut, petrol in Bangalore will now sell at Rs 69.35 per litre from the current Rs 72.63. The cut in Bangalore is effected by Rs 3.28 per litre. In Mumbai, the fuel will now sell at Rs 69.73 per litre from the earlier Rs 72.88 per litre while in Kolkata the cost per litre will go down by Rs 3.13 to Rs 70.35 per litre. The reduction in rates in Chennai will be Rs 3.18 per litre to Rs 65.90.

In Delhi, the rate of petrol will be reduced to Rs 63.09 per litre from Rs 66.09 earlier. But the prices in other states will vary according to the local taxes levied by their governments.
The last time petrol rates were below Rs 70 in Bangalore was on May 14, 2011, when the price dropped to Rs 65.30. Just two days later, price rose once again to Rs 71.10.

Consumer to benefit

India’s largest fuel retailer Indian Oil Corporation said it was passing on the reduction in international petrol prices to consumers. The global crude prices in the last fortnight have gone down from around $116 per barrel to around $107 per barrel. The rupee-dollar exchange rate has also improved from Rs 54.51 to a US dollar to Rs 54.26 in the same period.

 “Thus, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being affected,” IOC said. Other state-owned oil companies are also expected to follow suit.

Petrol prices were last reduced on April 16 by Rs 1.20 per litre. In March, the prices were lowered twice. But, a deep cut as this was effected only in December 2008, when petrol prices were slashed by Rs 5.

Diesel prices were, however, not revised despite the oil marketing companies suffering a revenue loss of Rs 3.80 per litre on sale of the fuel below the market rate.

 

Non-subsidised LPG price cut by Rs 54 per cylinder


The price of non-subsidised LPG cylinders was cut by Rs 54 per bottle on Tuesday. The move came just hours after petrol price was slashed by Rs 3 per litre, effective from midnight.

On April 1, the price of non-subsidised cooking gas was reduced by Rs 3 per cylinder in line with fall in international rates.

The government had in September 2012 fixed a quota of six subsidised LPG cylinders per household in a year. This was increased to 9 cylinders in January. Any requirement over and above this entitlement has to be bought at market price.

In the immediate aftermath of the September decision, oil PSUs had hiked price of non-subsidised LPG by Rs 26.50 per cylinder from November 1 but had to roll it back within hours as the government did not want to compound the backlash it was already facing for limiting supply of subsidised LPG to just six cylinders per household in a year.

But soon after the decision to raise the supply of LPG at subsidised rate of Rs 410.50 to 9 cylinders per household in a year from six, the rate for non-subsidised gas was hiked by Rs 46.50 per 14.2-kg cylinder to Rs 942 in Delhi from January 18. With oil prices easing, rates were cut to Rs 904.50 from March 1 and then to Rs 901.50 on April 1.