Essar Oil cuts fuel prices by up to Rs 2.50 a litre

Taking cues from falling global oil prices, the country's largest private fuel retailer, Essar Oil Ltd, will cut petrol and diesel prices in the range of Rs 0.50 to Rs 2.50 a litre from July 16 to bring them at par with rates of public sector firms.

At present, Essar Oil sells petrol and diesel at par with PSU rates only in three states, including Gujarat and Karnataka. In the remaining states, it sells auto fuel at rates higher than those of state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum.

"The international oil prices have fallen and as our pump rates are aligned to international prices, we will be reducing petrol and diesel prices from July 16," a company source said.

Last month, the company had raised diesel price by Rs 1-2 a litre and petrol rates by Rs 1-2.50 per litre as crude oil had climbed to $70 a barrel. With crude oil prices easing to under $61 per barrel, petrol and diesel prices are being cut by Rs 0.50 to Rs 2.50 a litre depending on location of the fuel stations, it said.

State-run oil firms last week raised petrol and diesel rates by Rs 4 a litre and Rs 2 a litre respectively to partly align them with rising crude oil prices. They sell petrol at Rs 48.76 a litre and diesel at Rs 36.70 a litre in Mumbai.

Essar sells petrol and diesel made at its 280,000 barrels per day refinery at Vadinar in Jamnagar district of Gujarat through its about 1,250 petrol pumps in the country.