Petrol cut by Rs 9.6, diesel by Rs 7.56 in 6 weeks; LPG rates to slide: IOC

State-owned Indian Oil Corp (IOC) Thursday said petrol price has been cut by Rs 9.6 per litre and diesel by Rs 7.56 in the past six weeks in step with the reduction in international oil rates.

It also refuted reports that domestic LPG price may touch Rs 1,000 soon.

"Considering continuous fall in international prices of petrol and diesel, IOC has been continuously reducing the prices of petrol and diesel in the domestic market for about one-and-a-half months now," the company said in a statement here.

The total reduction in the prices at Delhi from October 18, 2018 till date has been Rs 9.59 per litre for petrol and Rs 7.56 per litre for diesel, it said.

Petrol in Delhi currently costs Rs 73.24 per litre, down from Rs 82.83 on October 17. Diesel is priced at Rs 68.13 a litre, down from Rs 75.69 on October 17.

"Corresponding reduction in prices has also been effected in other markets all over India," it said.

On the issue of domestic cooking gas (LPG), IOC said with the falling international product prices, the rates are likely to come down in days ahead.

Currently, price of subsidised LPG in Delhi is Rs 507 while the non-subsidised LPG is sold at Rs 942 per cylinder.

While all LPG cylinders are available at market price, subsidised gas consumers get their subsidy entitlement directly into their bank accounts.

"Subsidy entitlement of LPG consumers is protected against any increase in price of LPG by compensating through increase in subsidy, which is borne by the central government," the statement said.

The government subsidises only 12 cylinders of 14.2 kg each per household in a year by transferring the subsidy amount directly into the bank accounts of LPG consumers.

More than 230 million LPG consumers have received subsidy of nearly Rs 945 billion crore since November 2014 through direct benefit transfer, it said.

IOC said the average prices of petrol and diesel in the international, as well as USD-Rupee exchange rate for the previous 15 days,15 days are considered while determining the retail price of petrol and diesel.

The past 44 days have seen a continuous declining trend in the domestic prices of petrol and diesel as there has been a decrease in the international prices.

"The movement of prices in the international oil market as well as rupee-USD exchange rate shall continue to be monitored closely and the prevailing trends of the market will be reflected in future price changes," it said.