State-run Indian Oil Corp (IOC) Tuesday announced a cut in petrol prices by 70 paise a litre, effective from midnight. The reduction is exclusive of local taxes, and the fuel's retail price in Delhi will come down by 85 paise a litre, IOC said. "The continued appreciation of the rupee (to the US dollar) has resulted in reduction in petrol prices warranting the proposed decrease," a statement here said.
Petrol price was last reduced on the first of this month by 75 paise a litre, excluding state levies, and the fuel currently sells in Delhi at Rs.72.26 per litre. Oil marketing companies (OMCs) are currently suffering under-recovery, or losses, of Rs.5.49 per litre on diesel, Rs.34.43 a litre on kerosene and Rs.505.50 per LPG cylinder, on account of selling these fuels below cost, IOC said.