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 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.
