Petrol price cut by Re 1 per litre, effective midnight

Oil companies today reduced the price of petrol by Rs 1 per litre, without taxes, after international prices cooled, Indian Oil, India's leading oil marketing company, said in a release. Diesel prices were left untouched.

Oil firms review the price of petrol every two weeks. While petrol price has been deregulated since June 2010 and the price is market determined, the government still controls the price of diesel, and allows only minor revisions.

"Since the last price change, the international prices of petrol have gone down from $ 119.23/bbl to $ 116.61/bbl," the statement said.

The hike comes even as the rupee appreciated marginally against the US dollar. "INR-USD exchange rate has...deteriorated slightly from Rs 54.28/USD to Rs 54.51/USD during the same period," the statement added.

After today's revision, prices stand as follows: New Delhi - Rs 66.09 per litre; Mumbai - Rs 72.88; Chennai - Rs 69.08; Kolkata - Rs 73.48; Hyderabad - Rs 72.14, and Bangalore - Rs 72.63.

The price of petrol was last revised on April 3, when it was reduced by 85 paise (without taxes), while the price of diesel was last increased on March 23, by 45 paise.

The government had this January allowed oil companies to increase the price of diesel by 40-50 paisa per litre every month until the companies have wiped out the losses they incur from having to sell diesel at subsidised rates. Oil firms are currently losing around Rs. 6.48 on the sale of every litre of diesel.

Along with diesel, the government sells cooking gas (LPG) and kerosene at subsidized rates, and compensates the oil firms for selling the fuels at lower prices.

For the last financial year ending March 31, 2013, the under-recovery (losses) on the three products is estimated at Rs. 1,60,000 crore.