Price of petrol down Rs 3.6/litre

New Delhi, Oct 1 – There's finally some cheer for consumers ahead of the festive season. State-run fuel retailers on Monday slashed petrol price by over Rs 3 a litre and raised diesel rate by 50 paise a litre, both excluding state taxes.

 

The retailers also increased the price of non-subsidized cooking gas cylinders sold to households beyond the annual quota of nine subsidized refills by Rs 71.50 per each.

 

For petrol, this is the steepest cut in more than five years and the first reduction since May 1 when the price was slashed by Rs 3 a litre. The actual reduction at petrol pumps would be more due to the incremental decrease in state taxes.

 

The price would go down by Rs 3.66 a litre to Rs 72.40 in Delhi and by Rs 4.14 a litre to Rs 79.49 in Mumbai from Tuesday.

 

Petrol price has been raised seven times since June, aggregating Rs 10.80 per litre, excluding VAT, as the rupee depreciated sharply. ToI had on September 12 first reported the impending price cut due to the trends in the oil and currency markets.

 

Oil minister M Veerappa Moily, too, had last Friday hinted at the cut saying any gains in the rupee's exchange rate and lower oil prices would be passed on to customers since petrol was sold as per market price. Diesel price is subsidized by the government, while oil companies have freedom to revise non-quota cooking gas price.

 

Diesel price has been raised in line with a January decision for monthly hikes in small doses to wipe out subsidy. The main transport fuel's rate would go up by 57 paise a litre in Delhi to Rs 52.54 and by 60 paise to Rs 59.46 in Mumbai.

 

Monday's hike in diesel price is the ninth since January 17. Its price had risen almost to market rates but the fall in rupee — around 25% since April — has worsened the situation and the subsidy gap has widened to Rs 14.50 a litre.

 

However, the recent firming of rupee against the dollar has trimmed these losses to Rs 10.52. Diesel rates have risen by a cumulative Rs 5.39 this year.

 

Source: TNN/ TOI