Petrol price cut by 95 paise per litre

New Delhi: Petrol price was on Thursday cut by 95 paise per litre, the second reduction in rates since October, on account of fall in international oil prices.

“Presently, the international oil prices are relatively stable,” a statement by Indian Oil Corp, the nation’s largest fuel retailer, said.

Petrol price in Mumbai has been reduced by Rs 1.20 per litre to Rs 73.53, while it will cost Rs 70.57 a litre in Chennai from on Friday instead of Rs 71.77 a litre currently. In Kolkata, the price has been cut by Rs 1.19 to Rs 74.55 per litre.

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.

“There has been significant volatility in the Indian rupee-USD exchange rate and is currently very weak with uncertainty about its future direction,” IOC said. “The trends in the international oil market and Indian rupee-USD exchange rate are being closely monitored and the same shall be reflected in future price changes.”

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 and oil companies buckled under political pressure to keep rates checked to help the government manage inflation
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