New Delhi: Petrol price was on Friday hiked by 28 paise per litre while diesel rate was lowered by 6 paise per litre (excluding State levies). Revised rates will take effect from midnight.
“The current level of international product prices of Petrol & Diesel and rupee-dollar exchange rate warrant increase in selling price of Petrol and decrease in selling prices of Diesel, 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.
After this revision, consumers will have to shell out Rs. 64.58 for a litre of petrol in Delhi, and Rs. 52.51 for a litre of diesel. Currently petrol retails at Rs. 64.21 per litre and diesel at Rs. 52.59 a litre in the national capital. Fuel prices were last revised on September 15, when the price of petrol was hiked by 58 paise per litre while that of diesel was slashed by 31 paise per litre (excluding state levies).
Petrol and diesel prices are deregulated in India, which means they are linked to market rates. State-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp and Hindustan Petroleum Corp revise rates of the fuels on the 1st and 16th of every month based on the average oil price and foreign exchange rate in the preceding fortnight.
“The movement of prices in the international oil market and rupee-dollar exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” IOC added.
Earlier in the day, the price of domestically produced natural gas was slashed by 18 per cent in the wake of a slump in global prices. The price of natural gas based on gross calorific value has been revised lower to $2.5 per million British thermal unit (mmBtu), with effect from October 1, from the current level of $3.06.
The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG), translating into lower retail prices. Fertiliser and power companies will also benefit from lower gas price.