Petrol price was on Monday cut by Rs 1 per litre and diesel by Rs 2 per litre, following a drop in international prices.

Petrol will cost Rs 60.09 a litre in Delhi from midnight of August 15, as compared to Rs 61.09 a litre currently. On the other hand, diesel will cost Rs 50.27 per litre, as against Rs 52.27 now, state-run Indian Oil Corporration said in a statement today. "The current level of international product prices of petrol and diesel and rupee-dollar exchange rate warrant decrease in selling prices of both petrol and diesel, the impact of which is being passed on to the consumers with this price revision," it added.

The last drop in prices was on July 31, when oil marketing companies reduced the price of petrol by Rs 1.42 a litre and diesel by Rs 2.01 per litre, which was the third reduction in that month, following the global cues. Normally, public sector oil marketing companies go for a revision in petrol and diesel prices on every fortnight. The major factors that determine a price reduction are the changes in international prices and the rupee versus dollar exchange rate.

The international crude oil price of Indian Basket as computed on August 12 by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was $ 41.82 per barrel. This was lower than the price of $ 41.97 per barrel on previous publishing day of August 10. In rupee terms, the price of Indian Basket decreased to Rs 2795.77 a barrel, as compared to Rs 2801.43 per barrel on August 10. #casansaar (PTI - business standard)