Continous fall in international crude prices resulted into slashing of petrol prices by Rs1litre effective midnight tonight — the third reduction in rates in one month.
After including VAT, the reduction in price of petrol in Delhi comes to Rs1.20 per litre and the fuel will cost Rs66.09 per litre from midnight tonight against Rs67.29.
However, there will be no change in diesel prices even though Monday was the appointed day for putting into effect the Government decision to hike rates by 40-50 paise a litre.
Monday’s cut in petrol price comes on the back of 85 paise a litre reduction in rates on April 2 and Rs2 a litre decrease effected on March 16. The March 16 cut after including VAT translated into a Rs2.40 a litre reduction at pumps. It was the steepest cut in nine months.
Petrol in Mumbai will cost Rs1.26 less at Rs72.88 per litre. In Chennai, the price has been cut by an equal measure to Rs69.08. It will cost Rs73.48 a litre in Kolkata from Tueday against Rs74.72.
Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said since the last price change international prices have declined from $119.23 per barrel to to $116.61 a barrel.
"Rupee-US dollar exchange rate has, however, deteriorated slightly from Rs54.28 to a US dollar to Rs54.51," it said, adding it was decided to pass on the benefit of reduced oil prices to customers.
IOC, however, did not say why the rates of diesel, which as per the January decision of the government are to be hiked by 40-50 paise per litre every month till all of the losses on the fuel are eliminated, were not changed.