Petrol prices slashed by 65 paise

Published On Dec 01, 2011 02:00 PM By CarDekho for Maruti Omni

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Petrol prices have been slashed yet again by 65 paise. The good news is passed down by the Indian Oil Corporation (IOC) after state-owned oil companies kept to their promise to share their baseline profits with the public. It is basically the combined effect of the crude oil price put together with the rupee exchange value. The crude oil price per barrel in Singapore presently stands at $107.00 a substantial decrease from $115.85 earlier. The chunk of profit here is unfortunately taken away partially by the rupee value which stands at 52.20 against a dollar as of yesterday.

Not very often do the consumers witness a drop in petrol price. Surprisingly, this is the second reduction in the gasoline price during this month. Just a fortnight back on November 16th, the public was euphoric about the first reduction in the petrol price ever since the commodity was decontrolled by the government. Around Rs 2.00 was slashed down from the petrol price which was then around Rs 76. However, the oil companies have informed back then that they are likely to implement the revision in the prices every now and then based on the factors influencing the price. Sticking to their word, they have implemented the hike, but with the underlying caution behind this. The petrol price might go up any time soon based on the international crude oil price and the financial market.

As the 65 paise reduction is exclusive of any taxes, the exact reduction in the petrol price varies from state to state. So, by the time, the consumer pays out of his pocket, the reduction does not amount to as much they claim it to be. Nevertheless, lucky those who reside in places like New Delhi who see as much as 78 paise per liter drop in the petrol price. Based on which, the petrol price in New Delhi will currently stand at Rs 65.64 per liter, while Mumbai sees a Rs 0.82 cut to cost Rs 70.65 a liter.