New Delhi: Petrol price cut on Tuesday by Re 1 liter but the first reduction in rates of diesel in more than five years will have to wait until the completion of assembly polls.
State oil firms cut petrol price by 54 paisa on October 1, reduced charges for another Re 1 per liter, excluding local sales tax or VAT with effect from midnight, Indian Oil Corp (IOC) announced here.
The price revision is due on Wednesday night, but it was announced a day earlier ahead of voting in Maharashtra and Haryana.
After taking into account the impact of the sales tax, the rate of one liter petrol in Delhi was reduced by Rs.1.21 to Rs.66.65 per liter, according to Indian Oil Corp (IOC), the largest fuel retailer country.
In Mumbai, the price of gasoline was reduced from Rs.75.73 to Rs.74.46 per liter.
"Since the last price change, international oil prices have continued to trend downward. However, the exchange rate USD-INR has depreciated. Spite INR-dollar depreciation, the fall in international prices oil guarantees a decrease in the price of gasoline sold in the domestic market.
"Thus, a downward revision in the price of gasoline sells for Re 1.00 / liter (excluding state levies) is made from midnight on 14/15 October 14 This price revision , retail price in Delhi shall decrease by Rs.1.21 / liter (including VAT), with corresponding decrease in other states, "said the IOC.
A Rs.2.50 per liter cut in the price of diesel, the first in more than four years, it is likely that after the results of assembly polls in Maharashtra and Haryana are announced on Sunday.
Diesel, the most consumed fuel in the country that has a direct influence on the prices of commodities, as is preferred for the transport sector fuel is regulated or controlled by the government.
The drop in international oil rates last month led to the situation where the state oil companies began to make profit on sales of diesel, the first time in history.
However, the benefit can not be passed on to consumers as the model code of conduct had come into place with the announcement of elections in Maharashtra and Haryana assemblies.
From reducing rates would have been a new policy, a review was postponed.
