Petrol price was on Monday cut by 85 paise a litre, the second reduction in rates in two weeks. The price cut, which was made possible because of fall in international oil prices, is excluding local sales tax or VAT.
After including VAT, the reduction in price of petrol in Delhi comes to R1.02 per litre and the fuel will cost R67.29 per litre against R 68.34.
The price cut comes on back of the R 2 a litre reduction in rates effected on March 16. This was the steepest cut in rates in nine months which after including VAT resulted in a reduction of R2.40 a litre in rates.
Petrol in Mumbai will cost R 1.07 less at R74.14 a litre. In Kolkata, the price has been cut by an equal measure to R74.72. It will cost R70.34 a litre in Chennai against R 71.42 currently.
Announcing the reduction, Indian Oil Corp (IOC), the nation’s largest fuel retailer, said since the last price change international prices of petrol have declined from $122.74 per barrel to $119.23 a barrel.
Also, the rupee-US dollar exchange rate has marginally declined from R 54.40 to a US dollar to R 54.28.
“Following this, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being effected,” it said in a statement. Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight.