Petrol price cut by Rs 3 per litre - biggest relief in more than four years
New Delhi   01-May-2013

Oil firms have cut petrol prices by Rs 3 per litre, the biggest cut in more than four years, bringing more relief to motorists as the fuel's price has dropped by Rs 10 since May last year. Global crude oil prices have fallen 6% in April, helping companies cut prices.

"Petrol price has been reduced due to softening of international oil prices and marginally favourable exchange rates," IndianOil Chairman RS Butola said. Oil companies have regularly cut petrol prices in recent months, while diesel prices, which are still below market rates, have been raised by about 50 paise a month, except in the past month.

Petrol prices were cut by a higher amount only in 2008-09 after global crude oil prices crashed from the record of nearly $150 to less than $40. The price of petrol was last cut by about Rs 1.20 per litre two weeks ago.

Since then, the international prices of petrol have fallen to $107 per barrel from $116/bbl. The currency has also appreciated by 25 paise to Rs 54.26 per dollar, further reducing the price in India. Diesel prices are now Rs 3.80 per litre below the landed price of imported diesel including customs duty, which is not actually paid.

Oil firms also suffer losses in sale of cooking gas as each cylinder is priced Rs 379 lower than market rates, while a litre of kerosene is sold at Rs 27.9 lower than market rates.