A fall in global crude oil prices and a favourable rupee-dollar exchange rate reasons for the cut in diesel and petrol prices, says Indian Oil
New Delhi: Petrol prices were on Monday cut by Rs2.16 per litre and diesel by Rs2.10 per litre, reversing the four-week trend of rising fuel prices.
The reduction, which will be effective from Monday midnight, comes on back of a marginal 2 paise per litre increase in petrol and 52 paise per litre hike in diesel rates effected from 1 May.
Prior to that, petrol prices was hiked by Rs1.39 per litre and diesel by Rs1.04 a litre from 16 April.
Indian Oil Corp. (IOC), the nation’s largest fuel retailer, said the price of petrol is being reduced by Rs2.16 per litre and that of diesel by Rs2.10—both excluding state levies.
Actual reduction in price will be more after taking into account local VAT.
Petrol in Delhi will now cost Rs65.32 a litre from Tuesday as against Rs68.09 currently. Similarly, a litre of diesel will be priced at Rs54.90 as compared to Rs57.35 at present.
“The current level of international product prices of petrol and diesel and Rupee-Dollar 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.
The movement of prices in the international oil market and Rupee-Dollar exchange rate will continue to be monitored closely and developing trends of the market will be reflected in future price changes, it said.