Petrol Prices Cut By Rs. 3.05
Oil companies have cut the petrol prices by Rs. 3.05 (excluding local taxes and VAT). The price changes have already come in effect as the Indian Oil Corporation Ltd. has decided...
Oil companies have cut the petrol prices by Rs. 3.05 (excluding local taxes and VAT). The price changes have already come in effect as the Indian Oil Corporation Ltd. has decided to effect the price changes from the midnight 30th Sep. This is the first reduction in the petrol prices in the five months as the prices were last reduced on 1st May of this year by Rs. 3.
As the above reduction is excluding local taxes and VAT, the overall reduction in the price in Delhi is Rs 3.66 to Rs 72.40 per litre, while the per litre petrol prices in Mumbai is now Rs 79.49 per litre with a reduction of Rs. 4.14. Reduction in the petrol prices is a good news for the motorcycle owners and petrol car owners. However, diesel car owners aren't getting such good news, because the diesel retail prices are rising by Rs. 0.50 (excluding local taxes and VAT).
Prices of Petrol were last revised upwards on 14th Sep'13. The decrease in petrol prices has now become feasible as above because of reduction of MS prices from about USD 117/ bbl to about USD 113/ bbl and appreciation of Rupee against Dollar from about Rs 66/$ to about Rs 63/$. Both these factors have resulted in the reduction of MS prices which is being passed on to the consumer.
In addition to above, in pursuant to GOI order dated 17th Jan'13, OMCs have been authorized to increase the retail selling price of Diesel within a small range every month until further orders. Accordingly, since then, Retail Diesel prices are being revised every month. In continuation of above, Indian Oil Corporation Ltd. has decided to effect the aforesaid increase in Retail Diesel prices. Even after the current increase, under recovery on Retail Diesel shall stand at Rs. 10.52/litre.
In addition to under-recoveries on Retail Diesel, the Corporation is also suffering under-recoveries on sale of SKO (PDS) of Rs.38.32/litre & LPG (Dom) of Rs. 532.50/cyl. For the year 2013-14, the Corporation is expected to incur under-recovery of Rs 73,500 crore on sale of these three sensitive products (Industry: Rs 1,39,600 crore).
The movement of prices in international oil market and INR-USD exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes.