Petrol prices cut by Rs 2 per litre

After the sharp criticism over the steepest hike, petrol price was on Saturday cut by Rs 2 per litre, a partial rollback of the Rs 7.54 a litre increase affected more than a week ago.

The reduction, a result of fall in international oil prices, will mean that petrol in Delhi will cost Rs 71.18 per litre from midnight tonight, as against Rs 73.18 at present.

The decision, flowing out of the fortnightly review by oil marketing companies, came as some relief for consumers battered by double-digit inflation and the May 24 hike which was the steepest ever that came on top of two increases in a year.

The May 24 hike had come under sharp attack from all political parties including allies like TMC and DMK and some ministers in the UPA and there was all-round demand for a rollback.

The Left and NDA had on May 31 organised a nationwide strike in protest against the hike.

Last week's steep Rs 7.54 per litre hike was done considering an average gasoline price of USD 124.37 per barrel and a rupee-dollar exchange rate of Rs 53.17 in the first fortnight of May.

Gasoline price have since fallen to USD 115.77 per barrel in the second fortnight but rupee-dollar rate has worsened to Rs 54.96 to a US dollar during the period.

The fall meant that petrol rates be cut by Rs 1.68 per litre, excluding local sales tax or VAT. In Delhi, after including 20 per cent VAT, the reduction will be Rs 2 a litre.