Move comes amid appreciation in rupee value against dollar
Indian Oil Corporation (IOC) on Monday announced a marginal decrease in petrol price, passing on the gains of appreciation in the rupee value against the U.S. dollar to consumers.
Petrol will cost Rs. 67.90 a litre in Delhi from Monday midnight, against Rs. 68.46 now. The price in Mumbai will be cut by 71 paise to Rs. 74.43 and by 70 paise in Kolkata to Rs. 75.44. In Chennai, it will be Rs. 71.48 a litre, against Rs. 72.19.
Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) are also expected to announce price cuts.
“It has been decided to revise the petrol price downward by 56 paise a litre [excluding State levies in Delhi] with effect from October 9,” IOC said in a statement here.
Petrol prices were last hiked by 70 paise a litre on June 24. The rupee-dollar exchange rate has shown an appreciating trend.
International oil prices remain firm
The international oil prices, however, continue to remain firm, casting their shadow on petrol prices, as there was significant volatility in international oil prices and exchange rate.
“The trends in the international oil market and exchange rate would be closely monitored and would be reflected in future price changes,” the release said.
IOC, BPCL and HPCL lost Rs. 2,600 crore on petrol sale during April-September due to inability to change the retail selling prices to the desired extent in line with market conditions.
Other than petrol, the fuel retailers also lose heavily on sale of diesel, cooking gas (LPG) and kerosene. They are losing Rs. 11.65 a litre on diesel, Rs. 33.93 on kerosene sold through the Public Distribution System and Rs. 468.50 a 14.2-kg LPG cylinder.
The three firms are projected to lose Rs. 1,60,000 crore in revenue on sale of the three products during the current fiscal, the IOC release noted.