The price of petrol has been reduced by Rs 2 a litre with effect from March 16. This is the highest cut in the last nine months but does not include local taxes and VAT. However, there will be no change in the price of diesel. The reduction in rates has been made possible due to the reduction in international oil prices. The international price of crude oil dropped from 112.73 USD to 107.41 USD.
The oil firms were expected to put in effect their monthly price hike of 40-50 paise per litre of diesel but now reports are suggesting that they have not do so in a move to ensure that the government does not face opposition in the parliament over the issue.
The price of petrol was last hiked by Rs 1.40 a litre on March 2. This was the second hike in petrol prices in just a fortnight, as the rates were increased by Rs 1.50 per litre on February 16.
