Petrol price slashed, scope for further reduction

New Delhi: In a major relief for the common man, the petrol prices have been slashed for the second time after the steep hike of Rs 7.54 per litre on May 24. Following the cut, while petrol gets cheaper by Rs 2.46 in the national capital, the price reduces by Rs 3.13 in Mumbai.

The cut is based on global crude prices and the exchange rate of the rupee vs the dollar. The price cut varies from Rs 2.46 per litre to Rs 3.22 per litre, depending upon local taxes.

Following the revision, the prices of petrol in different major cities are:

The second price cut after the steep hike in May varies from Rs 2.46 per litre to Rs 3.22 per litre, depending upon local taxes.

Delhi: Rs 67.78 (from Rs 70.24)

Mumbai: Rs 73.99 (from Rs 76.45)

Kolkata: Rs 73.35 (from Rs 75.81)

Lucknow: Rs 73.22 (from Rs 75.68)

Patna: Rs 71.36 (from Rs 73.82)

Bhopal: Rs 73.50 (from Rs 75.96)

The reduction in rates follows a Rs 2.02 a litre cut in prices on June 3. The two price cuts have wiped out more than half of the massive Rs 7.54 per litre increase in rates, the biggest in the history.

However, even after this reduction, there exists a scope for cutting rates by a further Re 1 per litre as current revision was done at average international oil rate in the first fortnight of June. Global oil prices have fallen by eight per cent since then.

State-owned oil firms have abandoned the practice of revising rates of petrol on 1st and 16th of every month and from now on will now do so on a random date so as to deter petrol pump dealers building positions.

Petrol pumps at some places run dry as owners stop taking supplies from companies if a reduction in price is anticipated. Similarly, if an increase in rate is expected, pump dealers start hoarding supplies.

(With Additional Inputs from PTI)

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