New Year Bonanza: Petrol & Diesel Price Reduces

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New Delhi: Petrol price was on Thursday cut by 63 paise per litre while diesel was made cheaper by Rs 1.06 per litre. Revised prices will take effect from the midnight of December 31 and January 1.

“The current level of international product prices of Petrol & Diesel and dollar-rupee exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision,” said Indian Oil Corporation, the country’s largest fuel retailer. Fuel prices were last revised on December 15 when the price of petrol was lowered by 50 paise while that of diesel was also slashed by 46 paise a litre.

State-owned fuel retailers – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – review petrol and diesel prices every fortnight based on average import cost and rupee-dollar exchange rate in the previous two weeks.

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International prices remained in a downbeat mood during their final Asian-hours trading session of 2015 with Brent trading around $36.66 per barrel. The rupee, on Thursday, ended higher at 66.15 against dollar against the previous close of 66.39. It has risen more than 1 per cent since the last fuel price revision on December 15.

International oil price benchmarks – Brent and US West Texas Intermediate (WTI) – have come down by around a third over 2015. Analysts estimate global crude production to exceed demand by anywhere between half a million and 2 million barrels every day.