New Delhi: Petrol price has been cut by 95 paise a litre in the capital, the second reduction in two months, because of a decline in global crude oil prices.
Petrol in Delhi will cost Rs67.24 a litre from midnight compared with Rs68.19 now. Prices vary from city to city because of differences in local taxes.
The previous reduction in petrol price was a 56-paise cut to Rs67.90 a litre on 9 October. Thereafter, the rate was hiked by 29 paise following the government’s decision to raise the commission paid to petrol pump dealers.
“Presently, the international oil prices are relatively stable,” Indian Oil Corp. Ltd, the nation’s largest fuel retailer, said in a statement.
Petrol price in Mumbai has been reduced by Rs1.20 a litre to Rs73.53, while it will cost Rs70.57 a litre in Chennai instead of Rs71.77 currently. In Kolkata, the price has been cut by Rs1.19 to Rs74.55 a litre.
“There has been significant volatility in the rupee-dollar exchange rate and is currently very weak with uncertainty about its future direction,” IOC said. “The trends in the international oil market and Indian rupee-USD (US dollar) exchange rate are being closely monitored and the same shall be reflected in future price changes.”
The government in June 2010 allowed fuel retailers the freedom to set petrol price in line with the cost. However, prices have seldom moved in line with cost and oil companies have buckled under political pressure to keep rates under check as the government fights inflation.