Petrol, diesel prices cut by Rs 2 per litre

Oil marketing companies (OMCs) have cut petrol and diesel prices by Rs 2 per litre across the country with effect from today. The actual increase or decrease in prices will vary from state to state depending on local VAT rates.

Motorists in Delhi, however, won’t enjoy as much of a benefit as the rest of the country, as its State Government has also raised the VAT on both petrol and diesel, also effective from today. As a result, petrol will actually be costlier by 28 paise per litre and diesel will be cheaper by just 50 paise per litre in the capital.

“The change in prices in Delhi is not in line with change in other metros due to increase in VAT rates by State Government on petrol (from 20 to 25 percent) and diesel (from 12.50 to 16.60 percent) from July 16, 2015. Had the VAT rates in Delhi remained unchanged, the reduction in retail selling price of petrol and diesel, would have been Rs 2.43 per litre and Rs 2.25 per litre, respectively,” a representative of Indian Oil Corporation said in a statement. With the price change, petrol will now cost Rs 66.90 per litre and diesel Rs 49.72 per litre in Delhi.

Since the last price change by OMCs, there has been a decrease in international prices of both petrol and diesel, and the rupee has also appreciated against the dollar during this period. The combined impact of both these factors has warranted the downward revisions, the Indian Oil Corporation statement added.

Petrol and diesel prices are generally revised by the state-owned OMCs on the 1st and 16th of every month, depending on the movement of fuel prices in the international market, as well as the rupee-dollar exchange rate of the previous fortnight. Prices of petrol and diesel were last revised on July 1.