Petrol price cut by 58 paise per litre, diesel to cost 25 paise less

State-run oil marketing companies today announced a reduction in the price of petrol by 58 paise per litre and that of diesel by 25 paise, reversing the trend of increasing rates, on global cues.

Petrol will cost Rs60.48 per litre from Monday mid-night in Delhi against Rs60.70 a litre currently.

A litre of diesel will cost Rs46.55 from Tuesday compared with Rs46.80 now, said Indian Oil Corporation (IOC), the nation's biggest fuel retailer.

The price cut more than reverses the hike of 36 paise a litre in petrol rates effected on 16 November, the first increase in five months. Similarly, in the case of diesel, it reverses the three rounds of hikes since October - the last being 87 paise a litre on 16 November.

"The current level of international product prices of petrol and diesel and rupee-dollar exchange rate warrants a decrease in prices, the impact of which is being passed on to consumers with this price revision," IOC said in a statement here.

Prior to the 16 November hike, petrol price had been slashed on four occasions - by Rs2.43 on 1 August, Rs1.27 on 16 August, Rs2 on 1 September and 50 paise on 1 November.

Diesel rates were not changed on 1 November, but hiked by 95 paise on 16 October and by 50 paise on 1 October. Diesel rates were last cut by 50 paise on 1 September.

State-owned fuel retailers - IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) - revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.

"The movement of prices in the international oil market and rupee-dollar exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," the IOC statement added.