Petrol price cut hinges on crude
New Delhi   11-Aug-2011

State-owned oil firms are making a small margin of Rs. 0.30 per litre on petrol but a reduction in retail price will be possible only if international rates come down on a sustained basis, market leader IndianOil said.

“Though there was reduction (in international oil prices), the reduction was only on one day that is on Friday when crude oil slid by over $6 per barrel. Since then it has been fluctuating.

Today, it is up more than $3.63 per barrel,” IOC chairman, Mr R. S. Butola, said. Based on the average international price in current month, the retail selling price of Rs. 63.70 a litre in New Delhi is overpriced by Rs. 0.30 a litre.

“We are keep monitoring price situation... If there is a fall in prices on consistent basis, we will definitely reduce retail prices,” Mr Butola said.

Current fortnight rates for petrol have been fixed based on the average rate of the previous fortnight (July 16 to 31).