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The retail selling prices of petrol was cut by Rs 1 a litre, excluding value added tax (VAT), with effect from Monday midnight because of a drop in international oil prices.
Including VAT, the prices would now be down by Rs 1.20 in Delhi to Rs 66.09, as compared to Rs 67.29 now, making it the third reduction in a month. Since the previous price change, international prices of petrol have gone down from $119.23 per barrel to $116.61 per barrel.
“Thus, it has been decided to pass on the benefit to customers, and, accordingly, the aforesaid reduction in the retail-selling price of petrol is being effected. It may be noted the Corporation has incurred losses of nearly Rs 500 Crore (OMCs Rs 1,050 Crore) on sale of petrol in the last financial year,” Indian Oil Corporation said in a statement on Monday.
Prices of petrol were last decreased by Rs 0.85/litre (excl VAT) and Rs1.02/litre (incl VAT) on April 3. In addition to losses on sale of petrol, OMCs are suffering under-recovery on sale of diesel of Rs. 6.48/litre, kerosene of Rs.30.49/litre and liquefied petroleum gas of Rs 433.00 per cylinder.
