Tuesday, April 30, 2013

Petrol price cut by Rs 3, steepest rate cut in 5 years

Story by The Financial Express

Petrol price was today slashed by Rs 3 per litre, the steepest reduction in rates in over five 

years.The fourth reduction in rates since March means that petrol in Delhi will cost Rs 63.09 a 

litre with effect from midnight tonight as against Rs 66.09 per litre currently.Rates will vary from 

city to city depending on local sales tax or VAT.In Mumbai, petrol price has been cut by Rs 

3.15 to Rs 69.73 per litre, while the fuel in Kolkata will cost Rs 70.35 from tomorrow as against 

Rs 73.48 per litre. The reduction in rates in Chennai would be Rs 3.18 per litre to Rs 

65.90.Today's price cut comes after three consecutive rate reductions on the back of falling 

international oil prices.State-owned oil firms, which revise rates every fortnight, had from April 

16 cut petrol price by Rs 1.20 a litre in Delhi.On March 16, the rates were cut by Rs 2.40 per 

litre and by Re 1 in the following fortnight.The price cut announced today is the steepest since 

December 2008 when rates were slashed by Rs 5 to Rs 45.62 per litre.Announcing the 

reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said that since the last price 

change, international prices have declined from USD 116.61 per barrel to USD 107 a 

barrel.Rupee-US dollar exchange rate too improved from Rs 54.51 to a US dollar to Rs 54.26. 

"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," an IOC statement said.