The Petroleum Ministry has reduced the prices of petrol by ?1 per litre all across the nation and they have already been effective from midnight yesterday. The Ministry of Petroleum has also decided to reduce the diesel prices by Rs. 2.50, after almost four years. The new diesel prices are likely to be effective after the results of assembly polls in Maharashtra and Haryana are announced on Sunday.
State-owned oil firms, which cut petrol price by 54 paisa on October 1, reduced rates by another Re 1 per litre, excluding local sales tax or VAT, with effect from midnight tonight, Indian Oil Corp (IOC) announced here. The price revision was due tomorrow evening but was announced today ahead of polling in Maharashtra and Haryana. After accounting for the incidence of local sales tax, petrol rate in Delhi was reduced by Rs 1.21 a litre to Rs 66.65 per litre, according to Indian Oil Corp (IOC), the nation's largest fuel retailer. In Mumbai, petrol price was cut from Rs 75.73 to Rs 74.46 per litre. The fall in international oil rates last month led to situation where state-owned oil firms started making profit on diesel sales, the first time in history. However, the benefit could not be passed on to consumers as the model code of conduct had come into place with the announcement of elections to Maharashtra and Haryana assemblies.
"Since last price change, international petrol prices have continued to show a downward trend. However, the INR-USD exchange rate has depreciated. Despite INR-USD depreciation, the fall in international oil prices warrant a decrease in selling price of petrol in the domestic market. Thus a downward revision in selling price of petrol by Re 1.00 /litre (excluding state levies) is being effected from midnight of 14th/15th Oct'14. With this price revision, Retail Selling Price at Delhi shall decrease by Rs 1.21/litre (including VAT), with corresponding decrease in other states," IOC said. Since reduction in rates would have been a new policy, a revision was deferred.