Petrol, diesel prices cut by Re 1

State-owned oil firms on Tuesday decreased retail selling price of petrol and diesel by up to Rs 1.08 and Rs 1.18 per litre, respectively, in step with the global softening of crude prices.

The new prices would be effective from midnight of Tuesday.

PETROL:

DIESEL:

Petrol would cost Rs 32.49 per litre in Delhi as against the prevailing Rs 33.49 a litre, while diesel prices have gone down from Rs 22.12 to Rs 21.12 per litre, official sources said in New Delhi.

The decrease in prices comes after a prolonged spell of hike in petrol and diesel prices.

Petrol prices in Kolkata have been decreased by Re 1 to Rs 34 per litre, while in Mumbai a litre of petrol would now cost Rs 37.52 as opposed to prevailing Rs 38.59.

Chennai saw a Re 1.08 per litre decrease in petrol prices to Rs 35.48.

Diesel prices in Kolkata declined from Rs 23.51 to Rs 22.52 per litre. In Mumbai, the fall was of Rs 1.18 per litre to Rs 26.70, while in Chennai diesel prices slipped from Rs 24.65 per litre to Rs 23.55 per litre.

International crude prices are on a decline since the war in Iraq started, ending the uncertainty. From a three-month high of $34.73 a barrel prior to the war, crude prices have fallen to less than $24 a barrel.

During the last three months, petrol and diesel prices had gone up by around Rs 5 per litre each, reflective of volatility in the international markets which were uncertain about the impact the war would have on crude supplies.

However, crude prices started declining immediately after the war started on March 20 but the oil companies did not revise downward the retail selling price of petrol and diesel on April 1 as the previous hikes did not cover the entire surge in crude prices.

The average procurement cost of the Indian basket of crude was $27 a barrel in the second fortnight of March which fell to less than $25 a barrel in the subsequent fortnight.

Sources said Petroleum Minister Ram Naik wanted oil companies to slash prices of petrol and diesel by at least Rs 1.50 per litre, but the oil companies resisted it saying the previous losses on selling product below the cost of crude have to be covered now.