Petrol price cut by Rs2 per litre; diesel price unchanged

Oil marketing companies have reduced the retail selling price of petrol by Rs2 per litre (excluding VAT) with effect from midnight tonight. They did not announce any change in the price of diesel as expected.

OMCs had, on 2 March, increased the price of petrol by Rs1.40 per litre (excluding VAT).

''Indian Oil Corporation Ltd has decided to reduce the retail selling prices of petrol with effect from midnight of 15/16 March 2013 by Rs2 per litre (excluding VAT),'' the company said in a release.

Since the last price revision, Indian Oil Corp said, the international price of crude oil have slid from $112.73 per barrel to $107.41 per barrel, leading to consequential fall in international prices of petrol. On the other hand, the company said, the rupee has depreciated marginally.

It has hence been decided to pass on the benefit to the customers and accordingly the aforesaid reduction in the retail selling price of petrol is being effected.

Indian Oil Corp, however, said the company has already lost over Rs500 crore on sale of petrol so far during the current financial year. The three state-run OMCs together must have lost a total Rs1,130 crore in subsidy account so far during the year, it added.

Fuel prices in India vary from state to state. In Delhi, petrol will cost Rs68.34 a litre beginning midnight of 15 March compared with Rs70.74 currently.

Diesel prices weren't changed and the fuel costs 48.16 a liter in the capital.

In Mumbai petrol will now cost Rs75.14 per litre against Rs77.66 a litre (Rs2.52 less); in Chennai it will cost Rs71.41 per litre against Rs73.95 a litre; in Kolkota Rs75.84 per litre against Rs78.34; in Hyderabad Rs74.59 against Rs77.21 and in Bangalore it will cost Rs75.26 a litre against the current Rs77.88 a litre. 

While petrol prices have been freed of price control, OMCs continue to suffer under-recovery of Rs8.46 per litre of diesel (HSD), Rs33.43 per litre on LPG (domestic) of Rs439 per cylinder. Indian Oil Corp has projected its total under-recovery on the three sensitive products to be around Rs86,500 crore and of the industry at around Rs1,63,000 crore during current year.

The movement in international oil prices and INR-USD exchange rate is being monitored and decision on future price changes will be taken accordingly.