Petrol Prices Cut by Rs 2/litre, No Change in Diesel prices

Taking a positive move, Oil marketing companies in India have cut the petrol prices by Rs 2 per litre, excluding state taxes. So the Petrol in Delhi and NCR now costs Rs 2.40 less. This is the highest cut in the petrol prices in the last 9 months. And one more good thing happened is the no-change in the diesel prices, which was earlier speculated to go up by 50 paise/litre. However, this has happened to save the government from the criticism it has been facing on partially decontroling the diesel.

The reduction in petrol prices has come on account of falling crude oil prices globally and strong rupee condition. Oil marketing companies which are bearing the loss of around Rs 11/litre on selling diesel has however put the price hike on hold for now, don't expect the scenario to remain the same for long. Oil marketing companies have already announced that the diesel prices will continue to hike till all the losses are covered, and

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.