Petrol prices reduced by 85 paise, INR 1.02 including taxes

Oil companies will reduce petrol rates by Re 1.02 a litre because benchmark international oil prices have dropped, which has also trimmed their revenue losses on diesel by more than Rs 2 a litre.

"We have decided to cut petrol prices by 85 paise without tax," an Indian Oil executive told ET. Effectively petrol will be Rs 1.02 per litre cheaper in Delhi pump.

This will be the second petrol price cut since March 15 when state oil firms reduced the fuel price by Rs 2.40 per litre citing about $5.3 a barrel fall in global crude oil rates.

There is about $1.5 per barrel gain in the average crude oil imported by domestic refiners. Even international petrol rates have also dropped by about $2 per barrel.

After including VAT, the reduction in price of petrol in Delhi comes to Rs 1.02 per litre and the fuel will cost Rs 67.29 per litre from midnight tonight against Rs 68.34.

Petrol in Mumbai will cost Rs 1.07 less at Rs 74.14 per litre. In Kolkata, the price has been cut by an equal measure to Rs 74.72. It will cost Rs 70.34 a litre in Chennai from tomorrow against Rs 71.42 currently.

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