Petrol prices were on Thursday cut by Rs 1.12 per litre and diesel by Rs 1.24 per litre, the last of the fortnightly revisions after which daily correction in rates in step with cost will be implemented.
From today, petrol and diesel rates will be revised in sync with any movement in international oil rates. Rates will change at 6 am everyday depending on movement in cost on the previous day.
Currently, prices are revised on 1st and 16th of every month based on the fortnightly average of international oil price and foreign exchange rate. The last such revision was announced on Thursday when petrol price was reduced by Rs 1.12 per litre, excluding state levies (VAT), and diesel by Rs 1.24 a litre, said Indian Oil Corp, the nation’s largest fuel retailer.
Actual reduction would be higher after taking into account local sales tax or VAT.
IOC said daily revision of retail selling price of petrol and diesel on pilot basis was implemented in Chandigarh, Jamshedpur, Puducherry District, Udaipur and Visakhapatnam from May 1.
“On the same lines, IOC intends to start revising retail prices of petrol and diesel across the country on a daily basis from June 16. Prices declared on a daily basis shall be applicable from 6 am to 6 am the next day,” IOC said.
The reduction in rate announced on Thursday comes on the back of Rs 1.23 a litre hike in petrol rates on June 1 and Rs 0.89 a litre in diesel price. “The current level of international product prices and Indian Rupee-US Dollar exchange rate warrant decrease in selling price of petrol and diesel, which is being passed on to the consumers with this price revision,” the statement said.