TODAY -

Petrol down by Rs 2.41/litre, diesel cheaper by Rs 2.25
Source: The Sangai Express / Courtesy : The Hindu

Delhi, October 31 2014 : Petrol price was on Friday cut by Rs 2.41 a litre, the sixth reduction since August 2014, and diesel by Rs 2.25 per litre on back of falling international oil rates.

The reduction in rates of petrol and diesel, which was deregulated for the first time in more than a decade, will be effective from Friday midnight, Indian Oil Corp, the Nation's largest fuel retailer, announced.

The Rs 2.41 a litre price cut in petrol and Rs 2.25 in diesel was after accounting for a 10-15 paise increase in commission paid to petrol pump dealers.

The reduction should have been higher by 10-15 paise if the dealer commission had not been increased.

Petrol will cost Rs 64.25 a litre in Delhi from Saturday as against Rs 66.65 currently.

In Mumbai, the rate will be cut by Rs.2.55 a litre to Rs 71.91 .

Since August, petrol price has been cumulatively cut by Rs.9.36 per litre.

Prices vary from State to State because of differential rate of local sales tax or VAT.

Diesel rates have been cut for the second time this month.

The Nation's most consumed fuel will now cost Rs 53.35 per litre in Delhi from Saturday compared to Rs 55.60 a litre at present.

In Mumbai, diesel price has been reduced by Rs 2.50 to Rs 61.04 .

The Government had on October 18, 2014 freed diesel prices from its control, giving freedom to oil marketing companies to adjust rates in line with cost.

On that day, rates were cut by Rs 3.37 per litre, the first reduction in price of diesel in over five years.

The previous decline dates back to January 2009 .

Simultaneously, the price of non-subsidised cooking gas (LPG) was cut by Rs 18.5 to Rs 865 per 14.2-kg cylinder.

Since August, this is the fourth reduction in rate of non-subsidised LPG which consumers buy after exhausting their quota of sub-market priced domestic cooking gas.

Non-subsidised LPG in Delhi was priced at Rs 922.50 in July and rates have in every subsequent month been reduced.

The only exception being October 23 when prices went up by a marginal Rs 3 per cylinder following Government raising the commission paid to LPG dealers/distributors.

"The price of petrol was last revised downwards with effect from October 15 by Rs 1.21 per litre (including State levies at Delhi) on the back of declining international oil prices," IOC statement said.

IOC said the Government decided to make diesel prices market-determined for all consumers on October 18 .

"Subsequently, with effect from October 19, based on prevailing level of international prices and Rupee-US dollar exchange rate, the selling price of diesel in domestic market was reduced by Rs 3.37 per litre (including State levies at Delhi) with corresponding decrease in other States," it said.

Since then, the international prices of both petrol and diesel have continued to be on a downtrend.

But foreign exchange rate has appreciated slightly.

"The combined impact of both these factors warrant the said decrease in retail selling prices of petrol and diesel," the statement said.

IOC said it was "closely monitoring" prices in international oil market and Rupee—USD exchange rate and developing trends of the market will be reflected in future price changes.


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