New Delhi: Petrol price on Friday cut by Rs 1.27 per litre while diesel rate was reduced by Rs 1.17 a litre – the second reduction in rates this month following global cues.
Petrol Price Cut By Rs 1.27 per Litre, Diesel By Rs 1.17 Per Litre :
The new rates will be effective from the midnight of August 14 and August 15, Indian Oil Corporation (IOC), the country’s largest fuel retailer, said in a statement. Petrol in Delhi will cost Rs 63.20 per litre from Saturday, as against Rs 64.47 a litre currently. A litre of diesel will cost Rs 44.95 as compared to Rs 46.12 currently.
Fuel prices were last reduced on August 1, when the price of petrol was lowered by Rs 2.43 per litre while that of diesel was slashed by Rs 3.60 a litre.
“Prices of petrol and diesel were last revised w.e.f. 1st August. Since last price change, there has been a decrease in international prices of both petrol and diesel. Rupee-dollar exchange rate has, however, depreciated during this period,” Indian Oil Corp said in the statement.
“Combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease.”
Last month, price of petrol was cut on July 1st by 31 paisa per litre while that of diesel was lowered by 71 paisa a litre. This was followed by 2/- per litre cut in rates of both petrol and diesel, excluding local sales tax, from July 16 but consumers in Delhi were deprived of the benefit as the Delhi government raised VAT (value-added tax).
As a result, petrol price in Delhi went up by 28 paisa a litre after the hike in VAT, or sales tax, on the fuel from 20 to 25 per cent. Prices of diesel, on which VAT was raised from 12.5 per cent to 16.6 per cent, saw a smaller reduction of 50 paisa per litre.
“The movement of prices in 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,” Indian Oil said.