It seems that on the 15th August 2014, the citizens of India have one more reason to rejoice, in addition to celebrating the country’s 67th Independence Day. According to industry reports, the state oil firms are planning to cut the cost of petrol by Rs 2.50 per litre, which would be the biggest fall in many months this year.
This would be the second consecutive petrol price cut in a month. State oil companies had slashed the cost of petrol by Rs 1.09 per litre on August 1 for the first time since mid-April. At the moment, the price of petrol in New Delhi is Rs 72.51 per litre.
With the Rs 2.50 per litre drop, the cost of petrol would fall to about Rs 70 per litre in New Delhi and to about Rs 79 in Mumbai. The cut may be even steeper, if the downward trend in the international petrol rates continues and rupee appreciates against the U.S dollar by August 15, when the fortnightly review of prices is due.
“But for weakening of the rupee, petrol would have been cheaper by about Rs 3 per litre. So far this month the average depreciation in rupee against the dollar is over 70 paise” a industry source said. Average international crude prices has slumped by about 7.5 dollars per barrel compared to the previous fortnight.