Petrol price cut: IOC studying trend, Delhi relaxes VAT

State-run  Indian Oil Corp has said it will cut petrol prices if fortnightly review shows a lower trend.

In a related development, the Delhi government has cut petrol prices by Rs 1.50/litre by removing value added tax (VAT) on the commodity.Petrol will cost Rs 71.68/ litre post this announcement.
This comes in the wake of  oil marketing companies announcing the steepest-ever hike of about Rs. 7.50 a litre in the petrol prices last week.
It may be recalled that following the petrol price hike there were protests in different parts of the city, hence states are considering lowering the price of the fuel.
The revised price of petrol in the capital  was fixed at Rs.73.18 a litre, up from Rs.65.64 a litre - a difference of Rs.7.54 and in Mumbai it is priced at around Rs 78 a litre.