Petrol price to be cut by over Re 1
Petrol prices are likely to be
cut by over one rupee a litre early next week as appreciation
in value of rupee against US dollar and fall in global oil
rates has made imports cheaper.
However, diesel rates will go up by 50 paisa per litre in
line with the practice of raising prices by small quantum
every month to wipe away subsidy on the fuel.
State-owned oil firms are due to announce revised petrol
and diesel prices on March 31.
"Rupee has appreciated to Rs 60.50 to a US dollar from Rs
61.44 and simultaneously international gasoline rates have
dipped from USD 118.09 per barrel to USD 115.73. The twin
factors will lead to a reduction in petrol price on Monday," a
source with direct knowledge of the development said.
The government, in June 2010, had given oil firms freedom
to fix petrol prices on 1st and 16th of every month based on
average global oil prices and foreign exchange rates in the
It had in January 2013 authorised oil firms to hike
diesel prices by 40-50 paisa per litre every month till such
time that the losses on the fuel are wiped out. Diesel prices
have risen on 14 occasions since then.
Election Commissioner H S Brahma, who had earlier this
month stated that government cannot discontinue the monthly
increases in diesel prices as it would tantamount to populism,
today said oil companies can revise petrol prices in line with
the practice they have been following since June 2010.
Oil companies can revise petrol prices without coming to
the Election Commission, he said.
Petrol and diesel prices were last revised on March 1
when rates where hiked by 60 paisa and 50 paisa respectively.
Petrol currently costs Rs 73.16 a litre in
while diesel Delhi
is priced at Rs 55.48 per litre.
Since January 2013, diesel rates have risen by a
cumulative Rs 8.33.