Petrol prices cut by Rs.3 per litre

Petrol prices have been slashed by Rs.3 per litre from midnight, state-owned Indian Oil Corp. announced Tuesday.

"Indian Oil Corporation Ltd. has decided to reduce the retail selling prices of petrol w.e.f midnight of 30th April 2013/ 1st May 2013 by Rs.3.00/litre (including VAT) at Delhi," said an Indian Oil release.

Allowing for local sales tax, the new prices of petrol per litre will be Rs.63.09 in Delhi, Rs.69.73 in Mumbai, Rs.65.90 in Chennai, Rs.70.35 in Kolkata, Rs.69.35 in Bangalore, and Rs.68.86 in Hyderabad.

Since the last price reduction of Rs.1.20 a litre (including VAT) at Delhi on April 16, international prices of petrol have gone down from around $116 per barrel (159 litres) to around $107 per barrel, while the rupee has also appreciated slightly against the dollar during the same period, IOC said.

"Thus, it has been decided to pass on the benefit to customers," the statement said.

IOC added that in addition to losses on sale of petrol, state-run oil marketing companies (OMCs) are suffering under-recovery, or loss, of Rs.3.80 per litre on sale of diesel, of Rs.27.93 per litre on PDS kerosene, and of Rs.379 per cylinder on cooking gas.