India cut petrol prices

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

A A A

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)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

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.

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

India cut petrol prices

Comments - 15

Add comment

RECOMMENDED

Religion: Not for public debate

Driving into Colombo’s money spinning car parks!

The runaway prophet?

Veil of uncertainty covering naked truth behind death of schoolgirl

Unwanted attention

Lurking predators make some temples unsafe for novice monks

Reforming abortion law in Sri Lanka

Most Viewed in News

Several arrested for smashing Green Lanka building in Nawam Mawatha

BIA bumps Ven. Ajahn Brahmawanso Thera from Bangkok flight to make way for Dinesh

It was not Dinesh who caused delay for Ajahn Brahm Thera at BIA but Nimal Siripala de Silva

Professionals from 14 categories required to register with IRD from today

Sweden registers sex as sport-- Will host first-ever European sex championship ?

Afghan team offers special meal to Sri Lankan team

TODAY'S HEADLINES

Rs. 60 mn found from bank accounts of Saddharatane Thero - CID

GR gets new luxury state bungalow in Colombo 07

Survey reveals Urban poverty tripled, rural doubled

Detection of Monkeypox cases:Don’t panic, says Epidemiology Chief

MIRROR CRICKET

Cummins sparks India collapse in WTC final

Coetzee, Stubbs, Muthusamy steer South Africa ‘A’ to series win

India fight back after Smith century in WTC final

Mahela Jayawardene to travel to Zimbabwe for ICC Cricket World Cup qualifiers

Cummins sparks India collapse in WTC final

Coetzee, Stubbs, Muthusamy steer South Africa ‘A’ to series win

India fight back after Smith century in WTC final

Players guaranteed to earn at least $30,000 at Women’s World Cup