New Delhi: Petrol prices may be slashed by about Rs 2 per litre from Wednesday, the first reduction in rates since January, 2009.
The reduction, possible because of a fall in global oil rates, comes days after state-owned oil companies raised petrol prices by a steep Rs 1.80 per litre.
The average price of gasoline (petrol) in the first fortnight of November was about $5 per barrel lower than the rate which formed the basis for the price revision on 3 November, said a top executive at one of the three state-owned fuel retail firms.
“Since petrol is a deregulated commodity which moves in tandem with international rates, we intend passing on the reduction to the consumers,” he said.
Gasoline, or petrol prices, averaged $115.85 per barrel during the first half of November, as against the $121.67 per barrel average during the second fortnight of October, which formed the basis for the Rs 1.80 per litre price increase.
In addition, the rupee has averaged Rs 49.20 per dollar this month, higher than the Rs 49.40 per dollar exchange rate in October.
Oil companies revise the price of petrol, which was freed from government control in June last year, on the basis of fortnightly average international oil prices.
“The reduction in oil price warrants a cut of Rs 1.86 per litre in the petrol price, excluding all taxes,” the official said, adding that the retail price - after taking into account the tax incidence - would go down by about Rs 2 per litre.
This will be the first reduction in petrol prices in 33 months.