Oil marketing companies have announced a cut in petrol prices by Rs 0.95 per litre with effect from midnight to pass on the impact of softening global rates. The fuel will cost Rs 67.24 in Delhi against the current price of Rs 68.19, said a statement from IndianOil. The new price in Mumbai, Chennai and Kolkata will be Rs 73.53 (-Rs 1.20), Rs 70.57 (-Rs 1.20) and Rs 74.55 (-Rs 1.19), respectively. The drop is lower in the other three metros due to a higher VAT component.

“Presently, the international oil prices are relatively stable. However, there has been significant volatility in the Rupee-USD exchange rate. The trends in the international oil market and the exchange rate are being closely monitored and the same shall be reflected in future price changes,” it said.

Petrol prices were last revised on October 27 when they were raised by 29 paise to Rs 68.19 per litre in Delhi following an increase in the commission paid to petrol pump dealers.



Petrol was decontrolled in June 2010 but companies have failed to pass on the regular desired increase due to political pressure. Oil marketing companies IndianOil, Bharat Petroleum and Hindustan Petroleum have incurred a loss of Rs 2,600 crore approximately on sale of petrol during April-September period due to their inability to change retail selling prices to match market conditions.



OMCs are also suffering under-recovery on sale of three sensitive petroleum products, namely diesel (Rs 9.84 a litre), kerosene (Rs 31.30 a litre) and domestic LPG (Rs 478.50 on six subsidised cylinder for each consumer). Projected under-recovery on these products is expected to cross Rs 160,000 crore for the current year against Rs 138,541 crore last fiscal.