Millennium Post

Govt’s petrol itch soothes

In a step that will come as relief to inflation-battered common people, the petroleum companies cut petrol price by Rs 2.46 per litre on Thursday, making it the second reduction this month. Petrol in Delhi will cost Rs 67.78 per litre with effect from midnight on Thursday, as compared to Rs 70.24 a litre rate now.

The reduction in rates follows a Rs 2.02 a litre cut in prices from 3 June. The two price cuts have wiped out more than half of the massive Rs 7.54 per litre increase in rates, the biggest in the history, effected last month.

Even after the latest reduction, there exists a scope for cutting rates by a further Re 1 per litre, as current revision was done at average international oil rate in the first fortnight of June. Global oil prices have fallen by eight per cent since then.

In Mumbai, petrol price has been cut by Rs 3.10 to Rs 73.35 per litre, while it will cost Rs 72.74 a litre in Kolkata from Friday compared to Rs 75.81 per litre currently. Chennai saw a Rs 3.07 per litre cut in price to Rs 72.74 a litre.

The state-owned oil firms abandoned the practice of revising rates of petrol on 1st and 16th of every month and from now on will now do so on a random date so as to deter petrol pump dealers building positions. Petrol pumps at some places run dry as owners stop taking supplies from companies if a reduction in price is anticipated.

Indian Oil Corp, the nation's largest fuel retailer, said the three oil firms are projected to lose a record Rs 1,51,000 crore in revenue on sale of diesel, domestic LPG and kerosene, whose rates have not been revised in past one year.

Sources said that the current revision in petrol price was done keeping in mind an average of USD 106.93 per barrel international rate for gasoline, against which domestic petrol prices are benchmarked.

'We can sustain these prices for sometime [without changing retail selling price]. Unless there is a further drop in oil prices and rupee strengthens, a revision in petrol rates looks extremely unlikely in coming days,' a source said.

IOC said that the company had lost Rs 1,053 crore during current fiscal on not being able to raise petrol rates in line with the cost in the first two months of current fiscal.


With the price of petrol cut by by Rs 2.46 per litre, the Trinamool Congress chief and United Progressive Alliance ally Mamata Banerjee said on Thursday that the petrol price had been lowered with an eye to the presidential election and would be increased later. 'The price has come down because of the presidential election. They will increase the price later,' Banerjee told reporters before leaving Writers Buildings. 'The price of crude oil has decreased by Rs 100. The price of petrol should have been cut by Rs 10 to Rs 30 per litre,' she said.
Next Story
Share it