Petrol Likely to get cheaper by Re 1, Diesel to be Costlier

This news has however come as not-a-huge relief, but the oil marketing companies might cut the petrol prices by around Rs. 1/litre, however diesel might see yet another hike. The change in the prices might take place on March 15 or 16.The diesel prices are likely to get higher by 50 paise per litre.

The cut in petrol prices has come on account of dip in crude oil prices globally and strong rupee condition. Although, the diesel prices will continue to increase as per the 50 paise/litre hike plan till the Rs. 11/litre losses on diesel are recovered.

Petrol prices have seen two consecutive hikes earlier this year, first in February by Rs 1.50/litre and then by Rs 1.40/litre in March 2013. Petrol as a fuel is a decontrolled commodity and oil marketing companies are free to control prices as per the market rates, diesel too has been partially decontrolled, oil companies have right to marginally hike prices by around Rs 50 paise on monthly basis. 

Diesel prices have been revised by Over Rs 1/litre in two instalments since January. And like mentioned above, the diesel prices will continue to increase till the lose of Rs. 11.26 per litre on sale of diesel is eliminated.