New Delhi: Petrol price were on Monday cut by Rs 1 per litre with effect from midnight, the third reduction in rates in the last four weeks. Earlier in April, the price was reduced by 85 paise per litre.
The price cut, which was made possible because of fall in international oil prices, excludes local sales tax or VAT. However, there will be no change in diesel prices even though Monday was the appointed day for putting into effect the government decision to hike rates by 40-50 paise a litre.
The petrol price cut comes on back of the Rs 2 a litre reduction in rates effected on March 16, which was the steepest cut in rates in nine months which after including VAT resulted in a reduction of Rs 2.40 a litre in rates.
In Delhi, the price was slashed by Rs 1.20 to Rs 66.09. Petrol in Mumbai will cost Rs 1.26 less at Rs 72.88 per litre. In Chennai, the price has been cut by an equal measure to Rs 69.08. It will cost Rs 73.48 a litre in Kolkata from Tuesday against Rs 74.72 currently.
Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said since the last price change international prices have declined from $119.23 per barrel to $116.61 a barrel. "Rupee-US dollar exchange rate has, however, deteriorated slightly from Rs 54.28 to a US dollar to Rs 54.51," it said, adding it was decided to pass on the benefit of reduced oil prices to customers.
IOC, however, did not say why the rates of diesel, which as per the January decision of the government are to be hiked by 40-50 paise per litre every month till all of the losses on the fuel are eliminated, were not changed. The company said it is losing Rs 6.48 a litre on diesel.
(With Additional Inputs From PTI)