Petrol price cut by 95 paise per litre

Petrol price was today cut by 95 paise per litreon account of fall in international oil prices. It is the second reduction in rates since October.The cut will come into effect from midnight tonight.

 
Petrol in Delhi would cost 67.24 rupees a litre , down 95 paise from 68.19 rupees a litre. Petrol price in Mumbai has been reduced by 1.20 rupees per litre to 73.53, rupees while it will cost 70.57 rupees a litre in Chennai from tomorrow instead of s 71.77 rupees a litre currently.In Kolkata, the price has been cut by 1.19 to 74.55 rupees per litre.

Prices vary from city to city due to differential local sales tax or VAT rates.

Global gasoline rates against which the domestic price of petrol is benchmarked have come down, but the rupee value against the US dollar remains volatile.

The government had in June 2010 deregulated petrol prices giving oil companies freedom to fix rates in line with the cost.

However, prices have seldom moved in line with cost. IOC and other state retailers, Hindustan Petroleum and Bharat Petroleum, lost over 2,000 crore rupees on selling petrol below cost during the first six months of current fiscal. And since the product is deregulated, there will be no subsidy support from the budget to cover these losses.