Petrol, diesel prices cut by Rs 2

New Delhi

Petrol and diesel prices were today cut by Rs 2 per litre, excluding local levies, in the second reduction of rates this month by oil companies.

The new rates announced by the oil marketing companies will be effective from midnight tonight.

“Prices of petrol and diesel were last revised w.e.f. 1st July’15. Since last price change, there has been a decrease in international prices of both Petrol & Diesel. INR-USD exchange rate has also appreciated during this period. Combined impacts of both these factors warrant the said downward revisions,” Indian Oil Corp (IOC), the nation’s largest oil company, said.

Price of petrol was last cut on July 1 by 31 paise per litre and diesel by 71 paise a litre.

“Since last price change, there has been a decrease in international prices of both petrol and diesel. Indian rupee-US dollar exchange rate has appreciated during this period. Combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” IOC said. .

The July 1 reduction in petrol prices came on back of three successive increases since May. In case of diesel, the July 1 cut was the second reduction in rates sine June.

Prior to that auto fuel rates were last revised on June 16 when prices of petrol were hiked by 64 paise a litre but diesel rates were cut by Rs 1.35 per litre.

State-owned fuel retailers IOC, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise petrol and diesel prices on 1st and 16th of every month based on average imported cost and rupee-dollar exchange rate in the previous fortnight.

“The movement of prices in international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” IOC statement added.

PTI