In a third such reduction in a month, petrol prices were reduced by Rs 1.51 per litre from midnight on Sunday while diesel prices were increased by 50 paise per litre excluding value added tax (VAT) .
The cut in petrol price will be more after the local taxes or VAT is added to the base price. VAT varies from state to state. Consequently, in Delhi, the petrol prices will be cut by Rs 1.82 a litre to sell at Rs 68.51 a litre.
In Kolkata, petrol will sell at Rs 76.14 down from Rs 78.03 per litre. In Mumbai, it will sell at Rs 76.41 from the current Rs 78.32 per litre. In Chennai, the new rate of petrol will be Rs 71.55 from Rs 73.47 per litre.
Similarly, after adding VAT, the increase in diesel prices in Delhi will come to 57 paise. Diesel will cost Rs 58.97 per litre in Delhi as compared to the current rate of Rs 58.40.
At Rs 68.51, petrol prices are lowest since June 2013 when it was sold Rs 68.58 per litre. Indian Oil corp, the nation’s largest fuel retailer, said the downward trend in international prices has also warranted a cut in price of non-subsidised cooking gas (LPG) by Rs 19 per 14.2-kg cylinder. Non-subsidised LPG is the one that household consumers buy after exhausting their quota of 12 bottles in a year.
Subsidised cylinder costs Rs 414 per litre in Delhi. A 14.2-kg non-subsided LPG cylinder will cost Rs 901 from Sunday against Rs 920 currently.
The rates for bulk diesel, which is priced at market rates, was cut by Rs 1.32 per litre in Delhi. As per government policy, bulk users like railways, defence and state road transport corporations buy diesel at market price, which is higher than pump rates.