Petrol prices cut by 75 paise per litre, hike in diesel put off: Media Report

Petrol prices cut by 75 paise per litre, hike in diesel put off: Media Report
The price of petrol was cut by 75 paise per litre, the first reduction in five months, while the already unpopular monthly hike in diesel rates was put off during the election season, reported PTI.

The reduction, effective midnight yesterday, excludes local sales tax or VAT and the actual cut will be higher, varying from city to city, said the media report.

The price of petrol was last increased by 60 paise on March 1 and will cost Rs 72.26 a litre in Delhi, down 90 paise from Rs 73.16 at present. In Mumbai, the fuel will cost Rs 80.89 a litre against Rs 82.07 currently.

However, state-owned oil firms will not raise diesel prices by the monthly 50 paise a litre decided in January last year as the loss on the fuel has dipped below the threshold of Rs 6 a litre because of the twin factors.

"The under-recovery on diesel is currently Rs 5.93 per litre which is below Rs 6 a litre, which is the interim subsidy cap recommended by the Expert Group 2013 of Dr Kirit Parikh.

"Hence, the issue of monthly price increase is under consideration of the government and the matter has been referred to the Election Commission. A decision regarding revision of diesel retail price shall therefore be taken on receipt of further advice by the government in this context," IOC said as per the PTI report.

Dion Global Solutions Ltd.

Story first published: Tuesday, April 1, 2014, 9:30 [IST]
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