Petrol price to be cut by Rs 1.89-2.38/litre from August 15
ET Bureau Aug 14, 2014, 03.55AM IST

Tags:
Petrol price|Oil minister|Indian Oil Corp|Dharmendra Pradhan|Chairman|B Ashok

(Till now, state-owned oil...)
NEW DELHI: Petrol will become cheaper by Rs 2.18 a litre in Delhi and up to Rs 2.38 in some cities on the Independence Day, bringing its pump prices to the lowest in one year, as the fuel slumped in international markets.

ET reported on Tuesday that state oil firms would announce the price cut before Independence Day. Oil minister Dharmendra Pradhan on Wednesday tweeted about the change in pump prices "in the range of Rs 1.89-2.38" per litre. Prices vary depending on cities and states because of local levies.

This is the second biggest price cut announced since October 1 when companies slashed petrol price by Rs 3.66 a litre in Delhi. And, two consecutive price cuts this month have reduced retail price by Rs 3.27 per litre this month — on August 1, oil companies had cut Rs 1.09 a litre in Delhi.

Petrol will be sold at Rs 70.33 per litre in the capital from Friday, which is close to the retail price prevailing a year ago."Since last price change, while international petrol prices have further declined, the rupee-dollar exchange rate has significantly depreciated.

The current levels of international oil prices and exchange rate warrant a decrease in selling price of petrol in the domestic market," Indian Oil Corp said in a news release.

A diesel price hike by about 56 paise in Delhi is expected by the end of this month.

The Cabinet in January last year allowed state oil companies to raise diesel rates in small monthly doses until its pump rate is aligned with market price.

Meanwhile, the oil ministry is preparing to approach the Cabinet soon with a proposal for comprehensive fuel-pricing reforms that would end uncertainty over subsidy sharing by state explorers such as Oil & Natural Gas Corp. ET reported this first on July 23.