Petrol price reduced by Rs 2 a litre

New Delhi. Amidst public clamour over the increase in petrol prices, oil companies today announced partial relief for consumers by reducing the price by about Rs 2 a litre.

The rollback, with effect from midnight today, comes just over a week after petrol prices were hiked by about Rs 7.50 a litre, the sharpest increase ever. The Opposition parties had called a Bharat Bandh on Thursday to protest the price hike.

The decision to cut the prices came after the latest fortnightly revision by the oil companies which decided to pass on the benefit of the decline in international crude oil prices to the consumers. Gasoline prices have fallen from USD 124.37 per barrel to USD 115.77 during this period.

After the reduction, petrol will cost Rs 71.16 a litre in Delhi, Rs 74.33 in Mumbai, Rs 75.40 in Chennai and Rs 75.81 in Kolkata.

“It has been decided to revise the petrol prices downward by Rs 2.02 per litre (including state levies in Delhi). The decrease in other states will vary depending upon the rate of the state VAT/sales tax,” Indian Oil Corp said in an announcement on behalf of oil companies.

Opposition parties were quick to reject the partial rollback. “The government is not impressing anyone by this rollback. A huge hike of Rs 6 still remains as a burden on the common man,” BJP spokesperson Rajiv Pratap Rudy said. “The BJP is not going to be satisfied with anything less than total rollback of the hike in petrol prices,” he said, adding that the party’s protest programme would commence on June 7.

West Bengal Chief Minister Mamata Banerjee, whose Trinamool Congress is a key constituent of the UPA government, also demanded a complete rollback. Banerjee spoke to Prime Minister, who was in Kolkata today, and is learnt to have expressed her displeasure over last week’s hike.

“I am not happy at the cut in the petrol price by Rs 2 per litre. It is not enough. It is still a burden on the common man. There should have been a total rollback of the hike,” she told reporters later. “Petrol price has been hiked unjustifiably. There has not been such an increase in crude price in international market. Such hike in petrol price had been effected willfully… People are not happy with this,” she said.

 
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