Petrol cheaper by Rs 2.43 in Bangalore

Weakening rupee may push up prices again

Earlier in the day, the oil companies slashed the basic price of petrol by Rs 1.85 a litre.
This is the first petrol price cut in nearly three years. The last time the prices were revised downward was in January 2009.

The reduction of Rs 1.85 per litre is the basic price cut by the fuel companies, on which the states levy their local sales tax.

Consequently, petrol will cost Rs 66.42 per litre in Delhi from midnight as against Rs 68.64 per litre now.

In Mumbai, petrol will sell at Rs 71.47 per litre, in Kolkata it will cost Rs 70.84 per litre, while in Chennai it will sell at Rs 70.38 per litre

The reduction in petrol prices was effected following a reduction in global crude oil prices and rupee dollar parity since end of October, India’s largest fuel retailer Indian Oil Corporation said in a press release posted on its website.

Price of petrol in global market dropped to $115 a barrel from an average of $125 last month.

The rupee also averaged 49.50 against the dollar during the same period.
IOC said that with Tuesday’s revision, there will be no under-recovery on account of petrol prices during the fortnight beginning November 16.

Experts, however, warned that if the rupee moves further away after suffering a significant depreciation in the past couple of days, its impact may get reflected in the next pricing cycle after a fortnight.

Rupee slid to a 33-month low on Tuesday and stood at 50.45 per dollar, making further the import of oil costlier for the Indian firms.