Petrol prices slashed by Rs3 per litre

State-run oil marketing companies today announced a Rs3 per litre reduction in the retail price of petrol, effective midnight tonight, as they continued to pass on the benefit of lower cost of imported crude oil.

The Rs3 per lire reduction in petrol prices is based on the retail price of petrol in Delhi and it may vary depending on the proportionate reductions in local taxes elsewhere.

This is also the biggest reduction in petrol prices in India over the past five years.

''Indian Oil Corporation Ltd has decided to reduce the retail selling prices of petrol with effect from midnight of 30 April / 1 May by Rs3.00 per litre (including VAT) at Delhi,'' Indian Oil Corporation, the country's top oil PSU, said in a release.

This is the fourth cut in petrol prices in two months. Oil firms review the price of petrol twice in each month.

While the OMCs have reduced the price of petrol, which is deregulated, they have not reduced the price of the still-government controlled price of diesel and cooking gas (LPG).

The government still controls the price of diesel, and had allowed maximum increases of 50 paise per litre a month and an overall increase of Rs10 per litre over period.

After tonight's revision, petrol in Delhi will cost Rs63.09 per litre while the prices will be Rs69.73 in Mumbai, Rs65.90 in Chennai and Rs70.35 in Kolkata.

The price of petrol was last revised on 15 April when it was cut by Re1 per litre without taxes.

Announcing the reduction, IOC said that since the last price change, international prices of crude oil have declined from $116.61 per barrel to $107 a barrel.

Rupee-US dollar exchange rate too improved from Rs54.51 to a dollar to Rs54.26 a dollar.

"Thus, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being affected," an IOC statement said.