Decision to cut its price will be taken only after PM Narendra Modi comeback from US
New Delhi: State owned oil marketing companies on Tuesday cut petrol prices by 65 paise a litre in national capital due to softening of its international prices. There will be corresponding reduction in states depending upon local taxes.
While, there is also an over-recovery of Rs1 a litre in diesel, a decision to cut its price will be taken only after PM Narendra Modi comeback from US. Petrol will now cost Rs 67.86 per litre in Delhi. Petrol prices were last cut by Rs1.50 (excluding local taxes) a litre on 31st August, 2014.
IOC said that since last price revision, petrol prices have continued to show a downward trend. “The Rupee-US dollar exchange rate has been depreciating. The current levels of international oil prices and exchange rate warrant a decrease in selling price in,” said IOC.
Petrol prices were deregulated from government control in June 2010 so its prices change according to international rates every month or after 15 days. Last year government had allowed PSU oil companies to hike diesel price every month by 50 paise until under-recovery on it is fully eliminated. Now due to regular increase in diesel prices, there is an over-recovery on diesel sale of around Rs1 a litre. A formal meeting of the Cabinet authorising the companies to cut prices is awaited.
( Source : dc correspondent )
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