Petrol price cut by 75 paise per litre
Indian Oil Corporation Ltd. has decided to decrease the retail selling price of petrol by 75 paise per litre (excluding state levies) with effect from midnight of March 31, 2014.
The price of petrol was last revised upwards by 60 paise a litre (excluding state levies) w.e.f March 1, 2014.
Since last price change, there is a declining trend in international prices of MS and the INR-USD exchange rate has also been strengthening.
The combined impact of both these factors has resulted in reduction in price of petrol, the benefit of which is being passed on to consumers through price decrease of 75 paise per litre (excluding VAT)
Note
Diesel prices, however, remained untouched, as the Election Commission’s approval was awaited.
The state-owned oil firms will not raise diesel prices by the monthly 50 paise a litre decided in January last year as the loss on the fuel has dipped below the threshold of Rs. 6 a litre because of the twin factors.
"The under-recovery on diesel is currently Rs. 5.93 per litre which is below Rs. 6 a litre, which is the interim subsidy cap recommended by the Expert Group 2013 of Dr Kirit Parikh," IOC said.
"Hence, the issue of monthly price increase is under consideration of the government and the matter has been referred to the Election Commission. A decision regarding revision of diesel retail price shall therefore be taken on receipt of further advice by the government in this context," the oil retailer added.
In pursuant to GOI order dated January 17, 2013, OMCs had been authorized to increase the retail selling price of Diesel (Retail) within a small range every month until further orders. Accordingly, since then, Retail Diesel prices have been revised every month
Since January 2013, diesel rates have risen by Rs. 8.33 over 14 monthly installments.
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