Petrol down by Rs3.05 per litre; diesel 50 paise costlier

State-run oil marketing companies have reduced retail selling prices of petrol by Rs3.05 per litre (excluding state levies) from the midnight of 30 September and 1 October 2013.

Simultaneously, the OMCs also increased the retail prices of diesel by 50 paise per litre.

State-run oil marketing companies had, revised prices of petrol upwards, on 14 September.

The current downward revision in petrol prices has become feasible because of a reduction of international prices of crude oil, to levels around $113 per barrels from about $117 per barrel, and the rupee's recovery to levels around 63 per dollar, from levels near 69 per dollar.

In a  statement issued on Monday, Indian Oil Corporation, the country's largest fuel retailer, said the gains arising from both the crude price fall and rupee's gains are being passed on to the consumer.

Indian Oil Corporation also announced a 50 paise per litre increase in the selling price of diesel.

The government had, through an order issued on 17 January 2013, allowed oil marketing companies to increase the retail selling price of diesel within a small range every month until further orders.

Since then, OMCs have been revising retail prices of diesel almost every month.

Even after the current increase, under recovery on retail diesel will be around Rs10.52 per litre, IOC noted.

OMCs, according to Indian Oil Corporation, are also suffering under-recoveries on sale of kerosene (PDS) of Rs38.32 per litre and Rs532.50 per cylinder of LPG (domestic).

For the year 2013-14, Indian Oil Corporation is expected to incur under-recovery of Rs73,500 crore on sale of these three sensitive products.

The three state-run oil retailers are expected to accumulate under-recoveries of Rs1,39,600 crore for the full financial year (April-March 2013-14).

IOC said oil companies are closely monitoring the movement of prices in international oil market and rupee-dollar exchange rate and that the evolving trends of the market will be reflected in future prices.

Prices of non-branded petrol per litre in metro-cities effective midnight of 30 September to1 October are:

• Delhi          Rs72.40
• Kolkata      Rs79.51
• Mumbai     Rs79.49
• Chennai     Rs75.68