Petrol prices may be cut by Re1, diesel to be costlier

According to latest reports, petrol prices may be cut by Re 1 while diesel prices are set to be costlier by 40 to 50 paisa a litre from March 15/16. While falling international oil rates has been the reason for the minimal drop in prices of petrol, the increase in diesel prices is part of the recommendation of raising the price of diesel in small doses every month till the existent Rs 11 per litre losses are covered.

Sources close to the center said that the official decision regarding the revision of prices in both petrol and diesel is expected tomorrow. The fall in the price of petrol comes after two hikes, one on February 16 when the price of petrol was hiked by Rs1.50 per litre and on the March 2 when the price was hiked by Rs 1.40 per litre. However both the price hikes that were announced were excluded from Value Added Tax (VAT).

Presently the price of petrol in Mumbai is Rs 77.66 per litre as per the last revision on March 1. Petrol in Delhi currently costs Rs 70.74 a litre. Since the last price revision of March 1, 2013 international gasoline prices have fallen from $131 a barrel to $120 a barrel. Apart from that the Indian rupee has also marginally appreciated against the US Dollar to Rs 54.11.

However diesel price have been hiked only once since January, 2013 and is presently priced at Rs 54.26 in Mumbai and Rs 48.16 in New Delhi. Despite the increase in prices of diesel it is said those oil corporations lose about Rs 11 per litre despite the fact that diesel is one of the most consumed of fuels.

Category : Business

Date : 14 March 2013