Petrol price cut by Rs2.16 a litre, diesel by Rs2.10

State-run fuel marketing companies have announced a Rs2.16 per litre reduction in the retail price of petrol and a Rs2.10 per litre reduction in the price of diesel, effective 16 May, reversing the trend of rising prices over the past four weeks.

The reduction, which will be effective from the intervening midnight of 15-16 May, comes on the back of a marginal 2 paise a litre increase in petrol and 52 paise per litre hike in diesel rates effected on 1 May.

OMCS had earlier raised petrol price by Rs1.39 per litre and that of diesel by Rs1.04 a litre on 16 April.

Indian Oil Corp (IOC), the nation's largest fuel retailer, said the reduction in the price of petrol and diesel by Rs2.16 per litre and Rs2.10 per litre, respectively excluded state levies.

The actual reduction in prices will be slightly higher more considering the proportionate reduction in VAT.

Petrol in Delhi now costs Rs65.32 a litre as against Rs68.09 earlier. Similarly, a litre of diesel is priced at Rs54.90 compared to Rs57.35 earlier.

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

IOC said it will continue to monitor the movement of prices in the international oil market and the rupee-dollar exchange rate so that the developing trends of the market will be reflected in future price changes.