New Delhi: After the sharp criticism over the steepest hike, petrol prices were on Saturday cut by Rs 2.02 per litre, a partial rollback of the Rs 7.54 a litre increase effected more than a week ago.
The reduction, a result of fall in international oil prices, will mean that petrol in Delhi will cost Rs 71.16 per litre from midnight tonight, as against Rs 73.18 at present.
The decision, flowing out of the fortnightly review by oil marketing companies, came as some relief for consumers battered by double-digit inflation and the 24 May hike which was the steepest ever that came on top of two increases in a year.
The 24 May hike had come under sharp attack from all political parties including allies like TMC and DMK and some ministers in the UPA and there was all-round demand for a rollback.
The Left and NDA had on Thursday organised a nationwide strike in protest against the hike.
Last week’s steep Rs 7.54 per litre hike was done considering an average crude price of $124.37 per barrel and a rupee-dollar exchange rate of Rs 53.17 in the first fortnight of May.
Crude price have since fallen to $115.77 per barrel in the second fortnight but rupee-dollar rate has worsened to Rs 54.96 to a US dollar during the period.
The fall meant that petrol rates be cut by Rs 1.68 per litre, excluding local sales tax or VAT. In Delhi, after including 20% VAT, the reduction will be Rs 2.02 a litre.