Prices cut for petrol, raised for diesel

Petrol prices were last revised upwards on September 14

Oil marketing companies have decided to go for a cut in petrol prices by Rs 3.05 a litre with effect from Tuesday. As part of the monthly decontrol dose, diesel prices would be raised by 50 paise a litre. Prices of petrol were last revised upwards on September 14.

“The decrease in petrol prices has now become feasible because of reduction of minimum support prices from $117 a barrel to $113 a barrel and appreciation of the rupee against the dollar from Rs 66 a dollar to Rs 63,” an Indian Oil Corporation statement said.

As part of its diesel decontrol measure, the government had given the nod to phase wise increase diesel prices with a monthly dose of 50 paise from January 17 this year.

Even after the current increase, under recovery on retail diesel shall stand at Rs  10.52 a litre.

In addition to the under recoveries on diesel, those on the sale of kerosene now stand at Rs  38.32 a litre and domestic LPG at Rs  532.50 a cylinder. For the year 2013-14, IOC  is expected to incur an under recovery of Rs  73,500 crore on the sale of these three sensitive products, while industry figures are expected to be Rs  1,39,600 crore.