Mumbai, October 1, 2013: In a move which will bring some cheer to owners of petrol-engined vehicles, Oil Marketing Companies (OMCs) have cut the price of the fuel by over Rs 3.60 a litre with effect from the midnight of September 30/October 1. Diesel prices were, however, raised by 50 paise a litre.
For petrol, this is the steepest cut in more than five years and the first reduction since May 1 when the price was slashed by Rs 3 a litre. Following the cut, petrol prices will fall to Rs 79.49 in Mumbai (down by Rs 4.13), Rs 72.40 in New Delhi (down by Rs 3.66), Rs 79.51 in Kolkata (down by 4.12), and Rs 75.68 in Chennai (down by Rs 3.87).
Since June 2013, the price of petrol has risen seven times (see table below) adding Rs 12.49 per litre to the fuel’s price in Mumbai.
Petrol prices were last revised upwards on September 14. According to an IndianOil Corporation statement, “the decrease in petrol prices has now become feasible because of reduction of international crude prices from about US$ 117/ bbl to about US$ 113/ bbl and appreciation of the rupee against the dollar from about Rs 66/$ to about Rs 63/$.” One bbl or barrel is the unit of volume for crude oil and petroleum products and equals 42 US gallons or 35 UK (imperial) gallons, or approximately 159 litres.
Autocar Professional had reported on September 14 that the next fortnightl would likely see a cut in petrol prices following the rise in the value of the rupee and a decline in international crude oil prices.
Meanwhile, diesel prices have been raised by 50 paise a litre, in line with the government and OMC plan to hike the price of the fuel every month. As a result, diesel now costs Rs 59.46 in Mumbai, Rs 52.54 in New Delhi, Rs 56.90 in Kolkata, and Rs 56.01 in Chennai. Since January 1, 2013, the price of diesel per litre has risen by 6.32 per litre in Mumbai (see table below). Nevertheless, even after the current increase, the under-recovery by OMCs on diesel stands at around Rs 10.52 a litre.