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Updated: March 15, 2013 19:33 IST

Petrol price cut by Rs. 2; no change in diesel rate

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Petrol price has been cut by Rs. 2 per litre. There will be no change in diesel rates. File photo
The Hindu
Petrol price has been cut by Rs. 2 per litre. There will be no change in diesel rates. File photo

Petrol price was on Friday cut by Rs. 2 per litre with effect from midnight on Friday night, the steepest reduction in rates in nine months.

While petrol price has been cut by Rs. 2 per litre, excluding local sales tax or VAT, there will be no change in diesel rates.

After including VAT, the reduction in price of petrol in Delhi comes to Rs. 2.40 per litre and the fuel will from midnight tonight cost Rs. 68.34 per litre as against Rs. 70.74 currently.

It was expected that oil firms will also effect the monthly hike of 40-50 paise per litre in diesel rates but they deferred the decision apparently to save the government from trouble in Parliament.

When oil firms had last hiked petrol price on March 2, the Opposition parties had disrupted one full day’s proceedings.

The cut in petrol price follows two rounds of hike in rates since February. Petrol price was hiked by Rs. 1.50 a litre on February 16 and then by Rs. 1.40 per litre from March 2. Both the increases were excluding local VAT.

The reduction in rates was possible as international oil prices have eased. While the slide in international prices of crude oil from $112.73 per barrel to $107.41 enabled reduction in petrol prices, it also helped lower losses on diesel sales.

Losses on diesel have come down to Rs. 8.64 per litre from Rs. 11.26 at the beginning of the month, according to Indian Oil Corp (IOC) which announced the price revision.

Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight.

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Why cannot the Government instruct the oil companies to give daily crude
oil rates imported various countries, companies as well as Indian ones
as the daily gold rates as well as dollar and pound rates. At least
people can try to understand how and why the rate varies. Likewise the
companies should also try to publish the amenities to its employees and
other unwanted expenses. This will help the general public a lot. We
are said to live in an independant republic

from:  P.V. Subramanian
Posted on: Mar 16, 2013 at 07:43 IST
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