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Petrol Price Cut Down But Diesel Gets Costlier

Petrol Price Cut Down But Diesel Gets Costlier

Petrol price was on Wednesday cut down by 32 paise, but 28 paise per litre increased diesel rates on international tendencies.

Petrol in Delhi will cost Rs. 59.95 a litre now whereas a litre of diesel will cost Rs. 44.96 as compared to Rs. 44.68

This is the sixth straight reduction in the cost of petrol on softening international rates. But in the case of diesel, a three halted -month declining trend.

Fuel rates were last revised on February 1 when the amount of petrol was cut by 4 paise a litre while that of diesel was lowered by 3 paise a litre following the authorities increased excise duty to take away most of the gain arising from fall in international petroleum prices.

The authorities had raised excise duty on petrol by Rs. 1 per litre as well as on diesel by Rs. 1.50 to mop up an additional Rs. 3,200 crore during the balance of the present fiscal year.

This was the fifth hike in excise duty since November cumulatively gave the authorities Rs. 17,000 crore in additional revenue. The five levy increases total to Rs. 4.02 per litre on petrol and Rs. 6.97 on diesel.

“The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant reduction in the cost of petrol and increase in the price of diesel, the impact of which is being passed on to the consumers with this cost revision,” IOC said in a statement.

95 paise a litre for petrol and Rs cut rates. 1.91 per litre on diesel in January in two reductions. A similar variety of reductions in December led to prices being cut by Rs. 1.08 on petrol and 71 paise on diesel.

State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) revise rates of the fuels on 1st and 16th of every month predicated on average oil price and foreign exchange rate in the preceding fortnight.

The revision was due on February 16 but the retailers choose to defer the revision.

“The movement of prices in the international oil market and Rupee-dollar exchange rate shall continue to be monitored closely and developing trends of the market will soon be represented in future cost changes,” IOC added.