business

Updated: Aug 01, 2015 09:23 IST

Government-run oil marketing companies reduced on Friday the retail prices of petrol and diesel by Rs. 2.43 per litre and Rs. 3.60 per litre, respectively, in the third reduction in rates this month.

With this change, the price of petrol in Delhi will become Rs 64.47/litre -- down from Rs 66.90/litre. The new diesel price will be Rs. 46.12/litre compared with the previous rate of Rs 49.72/ litre.

The revised rate of petrol in Gurgaon and Noida will Rs 66.06 and Rs 71.51, respectively, while diesel will be available for Rs 46.79 and Rs 51.62, respectively.



On July 16, the base diesel and petrol prices were reduced by Rs 2 per litre, although some states including Delhi raised local taxes, which nullified this reduction.

“Since last price change, there has been a decrease in international prices of both Petrol & Diesel. INR-USD exchange rate has, however, depreciated during this period. Combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” a statement by the Indian Oil Corporation Ltd (IOCL) said late Friday evening.

"The movement of prices in international oil market andRupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," the statement added.



IOCL also said that prices of non-subsidised LPG cylinders (14.2kg) in Delhi have been reduced to Rs. 585 from Rs. 608.50 per cylinder, a cut of Rs. 23.50 per cylinder. The price of subsidised LPG will, however, remain the same.

On Friday, HT had reported that the falling prices of crude in the international market had left the oil marketing companies with a legroom to reduce the price of both petrol and diesel by up to Rs. 4 per litre.

State-owned fuel retailers -- IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) -- revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.

(With PTI inputs)