Diesel price may be cut for first time in 7yrs; petrol by Re 1/lt

Petrol and diesel rates are due for revision on Sept 15 and there is a possibility of reduction in retail prices

With Brent crude oil prices dipping below $100 per barrel, petrol prices may be cut by Re one a litre and there is also a likelihood of first reduction in diesel rates in seven years.

Petrol and diesel rates are due for revision on September 15 and there is a possibility of reduction in retail prices if benchmark Brent crude continues to stay below $100 a barrel mark, official sources said.

This will be the fourth straight reduction in petrol price since last month. Rates were last cut by 1.82 a litre on August 31. Prior to that, petrol price was cut by Rs 1.09 a litre on August 1 and again by Rs 2.18 a litre on August 15.

Sources said there is also likelihood of a reduction in diesel prices, the first in seven years.

Diesel prices were last hiked on August 31 by 57 paise in line with the January 2013 decision to raise rates in small doses every month to bridge the difference between retail selling price and cost.

The difference, called under-recovery, had reduced to just 8 paise a litre after the last increase.

Diesel currently costs Rs 58.97 per litre in Delhi.