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Petrol price was on Monday cut by 85 paise a litre, effective from midnight, the second reduction in two weeks.
The price cut, which was made possible because of a fall in international oil prices, is excluding local sales tax or value-added tax (VAT).
After including VAT, the reduction in price of petrol in Delhi comes to Rs 1.02 a litre and the fuel will cost Rs 67.29 a litre from midnight tonight against Rs 68.34 earlier.
The price cut comes on the back of the Rs 2 a litre reduction in rates effected on March 16. This was the steepest cut in rates in nine months, which after including VAT resulted in a reduction of Rs 2.40 a litre in rates.
Petrol in Mumbai will cost Rs 1.07 less at Rs 74.14 a litre. In Kolkata, the price has been cut by an equal measure to Rs 74.72. It will cost Rs 70.34 a litre in Chennai from tomorrow, against Rs 71.42 currently.
Announcing the reduction, Indian Oil Corp (IOC), the nation's largest fuel retailer, said since the last price change international prices of petrol have declined from $122.74 per barrel to $119.23 a barrel. Also, the rupee- dollar exchange rate has marginally declined from Rs 54.40 to a dollar to Rs 54.28.
"Following this, 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 said in a statement.
Oil firms calculate the desired retail price on the 1st and 16th of every month, based on the average imported oil price on the previous fortnight.
The price change was to have been announced yesterday but was deferred because of March 31 being Sunday.
Non-subsidised LPG price cut by Rs 3 a cylinder
The price of non-subsidised cooking gas (LPG) was on Monday reduced by Rs 3 a cylinder, in line with a fall in international rates.
A 14.2-kg LPG cylinder that consumers would have to buy after they exhaust their enhanced quota of nine subsidised ones a year, will cost Rs 901.50 from Monday, according to Indian Oil Corp (IOC).
The government had in September last year fixed a quota of six subsidised LPG cylinders per household in a year. This was increased to nine cylinders in January. Any requirement over and above this entitlement has to be bought at market price.
In the immediate aftermath of the September decision, oil PSUs had hiked the price of non-subsidised LPG by Rs 26.50 a cylinder from November 1 but had to roll it back within hours as the government did not want to compound the backlash it was already facing for limiting the supply of subsidised LPG to just six cylinders a household in a year.
But soon after the decision to raise the supply of LPG at subsidised rate of Rs 410.50 to nine cylinders per household in a year from six, the rate for non-subsidised gas was hiked by Rs 46.50 a 14.2-kg cylinder to Rs 942 in Delhi from January 18.
With oil prices easing, rates were cut to Rs 904.50 from March 1 and now they been further cut to Rs 901.50. In Mumbai, every non-subsidised LPG cylinder will cost Rs 912 as against Rs 919.50 till last month. In Kolkata, prices have been cut by Rs 6.50 to Rs 926.50 while in Chennai prices have been reduced from Rs 898 to Rs 891.50.
Sources said losses on sale of LPG at subsidised rates have fell to Rs 434.50 per cylinder from Rs 439 previously.
Alongside the decision to raise cap on supply of subsidised LPG cylinders, the government had also moved towards deregulating diesel rates by allowing oil firms to hike rates by 40-50 paisa per litre once every month till such time that the entire losses are wiped out. Diesel rates have gone up three times by 50-51 paisa a litre each time.
