India cut petrol prices

29 June 2012 01:38 am - 15 - {{hitsCtrl.values.hits}}

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NEW DELHI: In a relief to inflation-battered common man, petrol price was on Thursday cut by Rs 2.46 per litre, the second reduction this month.

Petrol price in Delhi will cost Rs 67.78 per litre with effect from midnight tonight as compared to Rs 70.24 a litre rate now, state-owned oil companies announced today.

The reduction in rates follows a Rs 2.02 a litre cut in prices from June 3. The two price cuts have wiped out more than half of the massive Rs 7.54 per litre increase in rates, the biggest in the history, effected last month.

Even after today's reduction, there exists a scope for cutting rates by a further Re 1 per litre as current revision was done at average international oil rate in the first fortnight of June. Global oil prices have fallen by 8 per cent since then.

In Mumbai, petrol price has been cut by Rs 3.10 to Rs 73.35 per litre, while it will cost Rs 72.74 a litre in Kolkata from tomorrow compared to Rs 75.81 per litre currently. Chennai saw a Rs 3.07 per litre cut in price to Rs 72.74 a litre.

State-owned oil firms abandoned the practice of revising rates of petrol on 1st and 16th of every month and from now on will now do so on a random date so as to deter petrol pump dealers building positions.

Petrol pumps at some places run dry as owners stop taking supplies from companies if a reduction in price is anticipated. Similarly, if an increase in rate is expected, pump dealers start hoarding supplies.

Indian Oil Corp, the nation's largest fuel retailer, said the three oil firms are projected to lose a record Rs 151,000 crore in revenue on sale of diesel, domestic LPG and kerosene, whose rates have not been revised in past one year. Oil firms, IOC said, continue to closely monitor the international oil prices and the evolving scenario in rupee-dollar exchange rates to assess their potential impact on selling prices in future.

"It may be noted that prevailing global economic conditions have had an adverse impact on world petrol demand resulting in petrol margins over crude oil prices dipping to unsustainable lows. Therefore, price differential of crude and petrol shall also be under a close watch in the coming days," it said.

Sources said the gasoline cracks or the difference between cost of raw material (crude oil) and the price of product (petrol) had narrowed to just USD 3 per barrel. In comparison, cracks for diesel were as high as USD 12-13 a barrel.

With such narrow spread, any upward movement in crude oil price or devaluation of rupee would force an increase in price in near future, if the rates were to be cut now. (Source: economictimes)

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Comments - 15

Maheshwaran Appu Friday, 29 June 2012 01:57 AM

I feel it is better Sri Lanka be a state of India.

garawi Friday, 29 June 2012 01:58 AM

So this is why we also control the oil prices without allowing the market to decide!! Just because India does it.

Black Mamba Friday, 29 June 2012 02:13 AM

Can we expect such a miracle over here?

saman Friday, 29 June 2012 02:51 AM

67.78*2.5 = 169.45 still bettter

Nodrog Friday, 29 June 2012 02:54 AM

This is how it should be done but unfortunately because of corruption and inefficiency we cannot do likewise here.

Umar Friday, 29 June 2012 02:55 AM

Drea-ea-ea-ea-eam, dream, dream, dream
Drea-ea-ea-ea-eam, dream, dream, dream
When I want you in my arms (TANK)
When I want you and all your charms (Co2)
Whenever I want you, all I have to do is
Drea-ea-ea-ea-eam, dream, dream, dream ............... :)

meranchi Friday, 29 June 2012 03:13 AM

slash oil price even world market also ......i

Hot Line Friday, 29 June 2012 03:14 AM

await breaking news on oil prices - Minister will say: ...CPC is still facing loses...so we cannot bring down oil prices for the next 50 - 100 years untill the earth runs out of oil .....

citizen Friday, 29 June 2012 03:24 AM

indiyaawe ehema unath lankaawe ehema wenne naa

ind Friday, 29 June 2012 03:35 AM

Rs. 2+ reduce is a miracle ?? I think still Sri Lanka petrol price is better than India. See the petrol price in the article.

Calistus Jayatilleke Friday, 29 June 2012 03:33 AM

But according to our government spokespersons, the oil prices are still going up in the world market.

Abu Friday, 29 June 2012 03:39 AM

Follow India. Give some relief.at this election time....

Steve Friday, 29 June 2012 03:58 AM

if the prices quoted are indian rupees (which I believe is true)its still cheap here in SL when you look at the conversion rates...

Minister Friday, 29 June 2012 04:31 AM

Can we say "India - Miracle of Asia"?

AP Friday, 29 June 2012 05:55 AM

Hey man, can't you understand? Still Indian oil prices are higher than Sri Lanka. Think and calculate before make comments.

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India cut petrol prices

Comments - 15

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