First reduction in petrol prices in last 33 months

NEW DELHI: After lots more hike again and again now petrol prices may be slashed down by about Rs 2 per liter. This will be the first reduction in rates since January, 2009.

The reduction, possible because of a fall in global oil rates, comes days after state-owned oil companies raised petrol prices by a steep Rs 1.80 per liter.

Gasoline, or petrol prices, averaged USD 115.85 per barrel during the first half of November, as against the USD 121.67 per barrel average during the second fortnight of October, which formed the basis for the Rs 1.80 per litre price increase.

Also the rupee has averaged Rs 49.20 per US dollar this month, higher than the Rs 49.40 per US dollar exchange rate in October.

Oil companies revise the price of petrol, which was freed from government control in June last year, on the basis of fortnightly average international oil prices.

The reduction in oil price warrants a cut of Rs 1.86 per litre in the petrol price, excluding all taxes,” the official said, adding that the retail price — after taking into account the tax incidence — would go down by about Rs 2 per liter. In 33 months this will be the first reduction in petrol prices.
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