Petrol price will be cut by Rs 2 per litre and diesel by 50 paise per litre with effect from midnight tonight. The price cut is inclusive of state levies and will vary from state to state.
Earlier in the month, petrol price was cut by Rs 1.27 a litre and diesel by Rs 1.17 per litre with effect from August 15 and prior to that, rates of petrol were cut on August 1 by Rs 2.43. a litre and that of diesel by Rs 3.60.
The new petrol price effective from midnight will cost Rs 61.20 a litre in Delhi as against Rs 63.20 currently, while diesel will cost Rs 44.45 a litre as against 44.95 currently.
"Since last price change, there has been a decrease in international prices of both petrol and diesel. However, Rupee-US Dollar exchange rate has depreciated during this period. The impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease," IOC
said in a statement.
Last month, the price of petrol was cut on July 1 by 31 paise per litre and diesel by 71 paise a litre. This was followed by a Rs 2 per litre cut in rates of both petrol and diesel, excluding local sales tax, from July 16 but consumers in Delhi were deprived of the benefit as the Delhi government raised VAT.
As a result, petrol price in Delhi went up by 28 paise a litre after hike in VAT or sales tax on the fuel from 20 to 25 per cent. Rates of diesel, on which VAT was raised from 12.5 percent to 16.6 per cent, saw a smaller reduction of 50 paise per litre.
"The movement of prices in international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes," IOC said.
The effective change in price of petrol in Kolkata would be Rs 66.50 as against current price of Rs 68.10 and in Mumbai would be Rs 66.23 as against current price of Rs 68.24. In Chennai, it would be Rs 61.46 as against the current price of Rs 63.49.
Similary, Diesel in Kolkata would cost Rs 48.23 from midnight and that in Mumbai would be Rs 49.51 and in Chennai, diesel would cost Rs 45.56.(with inputs from PTI)