Petrol price to be cut by over Re 1

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

preceding fortnight.

     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 Delhi while diesel

is priced at Rs 55.48 per litre.

            Since January 2013, diesel rates have risen by a

cumulative Rs 8.33.