Petrol price was on Wednesday cut by 80 paise per litre and diesel by Rs1.30 a litre on global cues, the second reduction in rates this month. The reduction in petrol and diesel prices will be effective from Wednesday midnight. Prices of petrol in Delhi will be Rs59.20 a litre as against the current Rs60, while diesel will cost Rs47.20 per litre as against Rs48.50, said Indian Oil Corp (IOC).
Rates were cut by 49 paise a litre in case of petrol and Rs1.21 in diesel from April 2. “Since last price change, the trend of international prices of petrol and diesel and Rupee-US dollar exchange rate warrant a further downward revision in prices, the impact of which is being passed on to consumers with this price decrease,” IOC said in a statement.The second reduction in rates this month reverses two rounds of price hikes in February and March — first by Rs0.82 a litre in petrol and Rs0.61 per litre in diesel on February 16, and by Rs3.18 per litre in petrol and Rs3.09 a litre in diesel on March 1. Prior to these increases, petrol price had been cut 10 times since August 2014, and diesel 6 times since October 2014.
Cumulatively, petrol prices had been cut by Rs17.11 per litre in 10 reductions since August and diesel by Rs12.96 a litre since its deregulation in October. State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCl) and Hindustan Petroleum Corp (HPCl) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight. “The movement of prices in international oil market and Rupee-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes,” IOC said.