IOC cuts petrol price by Rs 2.42 per litre, diesel rate by Rs 2.25 a litre

Petrol price was on Friday cut by Rs 2.42 per litre and diesel by Rs 2.25 a litre after an excise duty hike by the government limited the benefit of the slump in global crude prices to six-year lows.

The reduction would have been almost double but the government also raised excise duty by Rs 2 per litre on both petrol and diesel on Friday.

This is the ninth straight reduction in petrol prices since August, and fifth in diesel since October.

New rates will be effective midnight tonight (January 16), Indian Oil Corp, the country's largest fuel retailer, announced in the national capital.

In the capital city, petrol will cost Rs 58.91 a litre, the lowest in 44 months, as compared to Rs 61.33 a litre now. Similarly, diesel will cost Rs 48.26 a litre, the lowest since April 2013, as against Rs 50.51 currently.

This is the fourth hike in excise duty since November and cumulatively customers have been denied the benefit of Rs 7.75 per litre reduction in petrol and Rs 6.50 a litre cut in diesel rates that was warranted due to the plunge in oil price to US $46 per barrel.

A Finance Ministry notification said the excise duty on unbranded petrol is being hiked to Rs 8.95 per litre and that on unbranded diesel to Rs 7.96 per litre.

The four excise duty hikes will result in about Rs 20,000 crore in additional revenue this fiscal and will help the government meet its fiscal deficit target of 4.1 per cent of the GDP.

Petrol and diesel prices were last cut on December 16 by Rs 2 per litre each.

Including today's reduction, petrol price have been cut by Rs 14.69 per litre on a cumulative basis since August, while diesel rates in five downward revisions have been slashed by a total of Rs 10.71 a litre.

Crude oil price in June was at US $115 per barrel.

Petrol price was on Friday cut by Rs 2.42 per litre and diesel by Rs 2.25 a litre after an excise duty hike limited the benefit of global crude prices slumping to six-year low.

The reduction would have been almost double but for the government also raising excise duty by Rs 2 per litre on both petrol and diesel on Friday.

New rates will be effective midnight tonight, Indian Oil Corp, the nation's largest fuel retailer, announced here.

In Delhi, petrol will cost Rs 58.91 a litre, the lowest in 44 months, as compared to Rs 61.33 a litre now. Similarly, diesel will cost Rs 48.26 a litre in Delhi, the lowest since April 2013, as against Rs 50.51 currently.

This is the ninth straight reduction in petrol prices since August, and fifth in diesel since October.

Including Friday's reduction, petrol prices have been cut by Rs 14.69 per litre on a cumulative basis since August, while diesel rates in five downward revisions have been slashed by a total of Rs 10.71 a litre.

This is the fourth hike in excise duty since November and cumulatively customers have been denied the benefit of Rs 7.75 per litre reduction in petrol and Rs 6.50 a litre cut in diesel rates that was warranted due to the slump in oil price to US $46 per barrel.

Crude oil price in June was at US $115 per barrel.