Petrol is cheaper by 65p/litre

Oil market companies pass on the benefits of falling global crude prices to consumers, cut non-subsidised LPG price by Rs 21 a cylinder, jet fuel by 3%

In line with the continuing fall in global crude oil prices, oil marketing companies (OMCs) on Tuesday cut petrol prices by 65 paise/litre, prices of non-subsidised cooking gas by Rs 21 a cylinder and aviation turbine fuel (ATF) by Rs 2,078/kilolitre. Following the revision, the price of petrol in the national capital stands at Rs 67.86/litre. Petrol prices were earlier revised on August 31, when these were cut by Rs 1.5 a litre, excluding state taxes.

 

“Since the last price change, petrol prices have continued to show a downward trend. However, the rupee-dollar exchange rate has been depreciating. The current levels of international oil prices and the exchange rate warrant a decrease in the selling price of petrol in the domestic market,” Indian Oil Corporation, India’s largest fuel retailer, said in a release.

Against Rs 71.51/litre in June, the price of petrol has fallen a cumulative five per cent so far. In June 2010, the government had decontrolled petrol prices. Since then, prices have moved in line with global rates.

The Rs 20/cylinder cut in the price of non-subsidised liquefied petroleum gas (LPG), which accounts for about 20 per cent of overall LPG sales, is the third price cut since July. A non-subsidised 14.2 kg LPG cylinder will now cost Rs 880 in Delhi, against the subsidised cylinder’s cost of Rs 414.

ATF prices were cut by Rs 2,077.6 a kilolitre, or three per cent, the third cut in the price of the fuel since July. Now, the price of ATF in Delhi stands at Rs 67,523.63 a kilolitre.

Though many had expected OMCs to announce a cut in diesel prices, too, this wasn’t the case. These companies’ over-recovery on diesel sales, which stood at 35 paise/litre a fortnight ago, has now crossed Rs 1/litre.