Petrol price was slashed by Rs 3 per litre from Tuesday-Wednesday midnight. Oil marketing companies resorted to the steepest cut since December 2008, following a reduction in global crude prices and an improvement in dollar-rupee exchange rate.
Following the rate cut, petrol in Bangalore will now sell at Rs 69.35 per litre from the current Rs 72.63. The cut in Bangalore is effected by Rs 3.28 per litre. In Mumbai, the fuel will now sell at Rs 69.73 per litre from the earlier Rs 72.88 per litre while in Kolkata the cost per litre will go down by Rs 3.13 to Rs 70.35 per litre. The reduction in rates in Chennai will be Rs 3.18 per litre to Rs 65.90.
In Delhi, the rate of petrol will be reduced to Rs 63.09 per litre from Rs 66.09 earlier. But the prices in other states will vary according to the local taxes levied by their governments.
The last time petrol rates were below Rs 70 in Bangalore was on May 14, 2011, when the price dropped to Rs 65.30. Just two days later, price rose once again to Rs 71.10.
Consumer to benefit
India’s largest fuel retailer Indian Oil Corporation said it was passing on the reduction in international petrol prices to consumers. The global crude prices in the last fortnight have gone down from around $116 per barrel to around $107 per barrel. The rupee-dollar exchange rate has also improved from Rs 54.51 to a US dollar to Rs 54.26 in the same period.
“Thus, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being affected,” IOC said. Other state-owned oil companies are also expected to follow suit.
Petrol prices were last reduced on April 16 by Rs 1.20 per litre. In March, the prices were lowered twice. But, a deep cut as this was effected only in December 2008, when petrol prices were slashed by Rs 5.
Diesel prices were, however, not revised despite the oil marketing companies suffering a revenue loss of Rs 3.80 per litre on sale of the fuel below the market rate.