On the back of lower gasoline prices in the international market, the state-owned oil marketing companies on Thursday cut the price of petrol by 95 paisa per litre. The cut was scheduled to be announced before Diwali, but the market leader, Indian Oil corporation decided to wait for a week before making the announcement. The fuel will now cost Rs73.53 in Mumbai, Rs67.24 in Delhi, Rs70.57 in Chennai, Rs74.55 in Kolkata, and Rs74.22 in Bangalore.
“Presently, international oil prices are relatively stable. However, there has been significant volatility in the rupee/dollar exchange rate and is currently very weak with uncertainty in its future direction,” said a statement by Indian Oil Corporation.
The oil marketing companies had last revised the petrol prices on October 27, when a hike of 29 paisa was announced after the government had increased the commission for the petrol pump dealers. “We were looking at the volatility of the gasoline price in the international market. While we were making some margins for the last one week, but we wanted to be sure that these margins will remain in the long run before announcing a price cut,” RS Butola had said before Diwali in a Press Conference.
Indian Oil has lost Rs 1,167 crore on the sale of petrol below cost in the first six months of the current fiscal year.