Leaning to the rise in the rupee value, the public sector oil companies have announced minor cut in the petrol prices by 95 paise per litre. With the price reduction the petrol will now be costing at Rs. 67.24 per litre from 68.19 per litre in Delhi. However the price cut in other cities will vary with the applicable tax. So, in Mumbai the price reduction will be about Rs. 1.20 bringing down the current price to Rs. 73.53 per litre.
Last time petrol prices were reduced by about 56 paise in October. However, the government again increased the price by 29 paise allaying commission for petrol pump dealers. Earlier this month, chairman, Indian Oil, R S Butola said that gasoline rate has dropped that had gave some margin but before company could take any action it raised again.
In 2010 government deregulated the hold over the petrol pricing allowing the oil companies to determine the rates as per the prevailing cost, although government still keeps checks on the petrol prices to keep and mange inflation. Indian Oil has lost about Rs. 1.16 crore by selling petrol at lower cost during the first half of the fiscal year. The Oil Companies are still hopeful that the appraising rupee can further lead to rate correction in near future.