New Delhi: With global crude rates coming down, petrol price has been cut by Rs 0.78 per litre, the second reduction in two weeks.
The reduction, which will be effective from midnight, was lower than the anticipated cut of Re 1 per litre because of drop in rupee and firming of international prices during the past 48 hours.
Petrol in Delhi will cost Rs 65.64 per litre as against Rs 66.42 a litre at present.
The reduction comes on back of a 3.2 per cent or Rs 2.22 per litre cut in rates effected from November 16. This was the first cut in retail prices in nearly three years and the first since prices were decontrolled in June 2010.
Before that, oil companies on November 4 raised petrol price by Rs 1.80 a litre as fall in rupee's value against the dollar increased the cost of oil imports.
Indian Oil Corp (IOC), the market leader which announced latest cut in price on behalf of the industry, said the reduction was made possible as the decline in international rates of the fuel outweighed the drop in the rupee.
"The combined impact of the two factors is an over-recovery of Rs 0.65 per litre (excluding taxes)," it said in a statement.
The price of petrol averaged about USD 109 in the second fortnight of November, over 5 per cent less than the USD 114.14 a barrel in the previous 15 days.
Rupee averaged 51.50 per dollar this fortnight, 4.4 per cent weaker than the 49.32 in the preceding two weeks. A lower rupee increases the cost of oil imports for Indian refiners.
Petrol in Mumbai will cost Rs 70.65 a litre, down by Rs 0.82 per litre.
(With additional inputs from PTI)
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