Petrol price cut by 91 paise/litre and diesel by 84 paise/litre

More reasons to rejoice for motorists with state-run oil marketing companies slashing the petrol prices by 91 paise and diesel by 84 paise. The effective price of petrol now stands at Rs 70.95 and diesel costs Rs 60.11. This is the seventh price cut for petrol in the last four months and the third for diesel since October 18.

The price cut is majorly due to the reduction in global crude oil prices that have dropped to the tune of 40 percent since June this year. 

"Since the last revision, international prices of both petrol and diesel have continued to be on a downtrend. The rupee-dollar exchange rate has, however, appreciated since the last price change. The combined impact of both these factors warrant a decrease in retail selling prices of both petrol and diesel," an IOC spokesman said.

However a dealer has a different story to this entire price reduction strategy by the government.

"Despite a hike in central excise on petrol and diesel in mid-November, there was a scope to reduce fuel prices by 50 paise to Rs 1 per litre on November 15. But oil companies silently usurped the amount. Private retailers are silent partners of public sector oil firms in this because they have historically suffered from predatory pricing and this is the time to make up for some of their past losses," said one dealer, requesting anonymity.

In the end the common man will stand to benefit from these price cuts and we might as well see more of such reduction in prices soon.