Fuel prices slashed – Petrol by Rs.2.43, Diesel by Rs.3.60 per litre

Oil marketing companies have reduced the retail prices of petrol by Rs 2.43 per litre and diesel is reduced by Rs 3.60 per litre.This is the third straight reduction in fuel prices this month. The revised rates are effective from today, 1st August 2015.

Petrol in Delhi will now cost Rs 64.47 per litre  instead of Rs 66.90 earlier, while a litre of diesel will cost Rs 46.12 as against Rs 49.72 , as per Indian Oil Corporation. On July 16,  diesel and petrol prices were reduced by Rs 2 per litre, although some states, including Delhi raised local taxes, which had nullified this reduction.As a result, petrol price in Delhi went up by 28 paise a litre after considering a local government decision to hike VAT or sales tax on the fuel from 20 to 25 per cent. The rates of diesel, on which VAT was raised from 12.5 per cent to 16.6 per cent, saw a smaller cut of 50 paise per litre.

“Prices of petrol and diesel were last revised on July 16, 2015. Since the last price change, there has been a decrease in international prices of both petrol and diesel. The rupee-dollar exchange rate has, however, depreciated during this period. The combined impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” the Indian Oil Corporation said in a statement.

Prior to this, the price of petrol was cut on July 1 by 31 paise per litre and diesel by 71 paise a litre. The price of non-subsidized LPG has been also been reduced by Rs 23.50 per 14.2-kg cylinder and now costs Rs 585. The price of subsidised LPG however, remains the same.