Petrol price cut further by Re1 per litre

State-run oil marketing companies (OMCs) have announced a Re1 per litre reduction in the price of petrol effective midnight tonight – the third reduction in retail prices of petrol in one month.

The price reduction, which excludes local sales tax (VAT), has been made possible by of fall in international prices of crude oil, Indian Oil Corp said in a release.

Including changes in VAT, the actual reduction in petrol prices could go up to Rs1.20 per litre.

OMCS also decided not to raise diesel prices by 40-50 paise as planned earlier on the appointed day of effecting a price revision, ie, the first and 15th of each month.

OMCs had, on 2 April, reduced petrol price by 85 paise per litre following a Rs2 (Rs2.40 including VAT) per litre reduction on 16 March.

Petrol in Mumbai will now cost Rs1.26 less at Rs72.88 per litre, in Chennai it will cost Rs69.08 (down by an equal measure), while in Delhi it would be cheaper by Rs1.20 at Rs66.09 and in Kolkata Rs1.24 lower at Rs73.48 per litre.

Indian Oil Corp said since the last price change international prices have declined from $119.23 per barrel to $116.61 a barrel.

"Rupee-US dollar exchange rate has, however, deteriorated slightly from Rs54.28 to a dollar to Rs54.51," it said, adding it was decided to pass on the benefit of reduced oil prices to customers.

While OMCs were silent on the proposed 40-50 paise monthly hike in diesel prices, they also did not say if it would still be raised.