JOIN US Petrol price is likely to be reduced by Rs 1.50-1.60 a litre on Friday, a day after the Bharat bandh was observed by the Opposition parties and some ruling coalition partners.
Petrol prices were steeply increased by at least Rs 7.50 per litre last week triggering sporadic protests. Various political parties including those in the NDA, Left parties and even some parties supporting the ruling UPA coalition had given a call for the bandh to protest the hike.
According to informed sources however, the government decided not to reduce the hike on Thursday as otherwise, it would be seen as the government succumbing to the pressure because of the Bharat bandh.
The oil marketing companies gave an indication of the reduction in petrol prices by reducing the aviation turbine fuel (ATF) on Thursday. The jet fuel prices were cut by 2 per cent, the fourth straight reduction in rates since April.
The price of ATF in Delhi was reduced by Rs 1,376.81 per kl, or 2 per cent, to Rs 65,670.14 per kl with effect from midnight, said Indian Oil Corp, making the announcement on behalf of the industry.
Indian Oil, Hindustan Petroleum and Bharat Petroleum had, over the past one week, indicated scope for reducing rates from June 1.
The three firms, as per practice, were to revise rates of petrol on Thursday based on the average international oil price and rupee-US dollar exchange rate in the previous fortnight. With international gasoline rates, against which petrol is benchmarked, falling to USD 114-115 from USD 124 (that was taken into account for the steep Rs 7.54 a litre hike effected from May 24), there existed a scope for reducing prices by Rs 1.50-1.60 a litre. R K Singh, chairman and managing director of Bharat Petroleum, told a news channel of the possibility of petrol price reduction.