A month after effecting a Rs 3 per litre cut in petrol prices, oil marketing companies (OMCs) on Thursday further reduced them by Rs 1.15 a litre, though diesel prices were raised by 50 paise a litre.
The price changes announced by oil companies are excluding local sales tax or VAT and will be effective midnight tonight, they announced. Subsequently petrol price in Delhi will be cut by Rs 1.38 to Rs 71.02 per litre. The decision to reduce petrol prices comes in the wake of a Rs 3.05 per litre (Rs 3.66 after including VAT) cut in rates which was effected from October 1, 2013.
Prior to that, petrol prices had since June risen seven times, totalling Rs 10.80 per litre, excluding VAT (Rs 13.06 after including State tax) as the rupee depreciated sharply against the rupee. In a parallel move, diesel price was hiked by 50 paise, excluding VAT, in line with the January decision of the Government allowing oil companies freedom to raise prices in small doses every month to wipe out mounting losses.
The diesel price in Delhi has been hiked by 56 paise to Rs 53.10 per litre, effective from midnight. This is the 10th hike in diesel prices since January 17, 2013 and most of the losses on diesel sales should have been wiped out by now to make the fuel market priced.