Petrol price cut

State-run fuel retailers have pared petrol price by Rs 3 a litre, marking the fourth — and the steepest — reduction since December 2008 on the back of a continuous fall in international oil prices and a strengthening rupee.
In Mumbai, the fuel will cost Rs 69.73 per litre from midnight on Tuesday. In Delhi, it will cost Rs 63.09 a litre Rs 70.35 in Kolkata and Rs 65.90 in Chennai. The reductions vary by a few paise due to differences in local tax and freight charges. The retailers had reduced the price by Rs 1.20 on April 16. On March 16, the rates were cut by Rs 2.40 per litre and by Re 1 in the following fortnight.
The steepest cut so far was affected in December 2008 when pump price was slashed by Rs 5 . IndianOil Corporation, the country’s largest fuel retailer, said international prices have declined from $116.61 per barrel to $107 a barrel since the last reduction. The rupee-dollar exchange rate too improved from Rs 54.51 to Rs 54.26.
Diesel prices, however, have not been raised though there still remains a substantial gap between its pump price and market rate. The government had, in January, allowed the fuel retailers to raise diesel price in small doses of 40-50 paise each month till it reaches market rate. But the oil ministry has asked retailers to hold the price line since it would be difficult to explain the hike to consumers at a time when the petrol price was being cut.