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Petrol rates to be reduced by Rs 3 per litre

The rates of petrol have been reduced by Rs. 3 per litre from March 1, 2013 in India. The new rates will be the first substantial price cut in about a year. This is also the fourth reduction in the rates since the month of March.

After the reduction, Petrol in Delhi will cost Rs. 63.09 per litre, which was earlier 66.9 per litre and the rates of petrol will vary from city to city. In Mumbai, the price of petrol will be cut by Rs. 3.15 and will cost Rs. 69.73 per litre, whereas in Kolkata  fuel will cost Rs. 70.35, against 73.48 per litre. In Chennai, petrol rates will be cut by Rs. 3.18 per litre to Rs. 65.90.

The recent price cut has been conducted after three consecutive price cuts have taken place, due to a fall in international fuel rates. The decision was taken by the Indian Oil Corporation Ltd. on April 16, 2013 and the price of petrol was reduced by Rs. 1.20 per litre in Delhi. The rates were reduced due to the variations in the international prices.

Oil companies are facing loses in the sales of petrol, while the OMCs are suffering under –recovery on the sale of HSD retail at Rs. 3.80 per litre.