Petrol has become cheaper by Rs 1.20 a litre (including value added tax) effective midnight of April 15. This is the second time prices have been cut this fiscal.
However, the price of diesel has been left untouched. The price of petrol and diesel are reviewed on a fortnightly basis.
If the current trend of softening global crude oil and product prices continues, a further cut in fuel prices can be expected, those tracking the sector said.
After almost a year, the price at which Indian refiners buy their crude oil could be seen hovering around $100/barrel or lower.
The international crude oil price of the Indian Basket fell sharply to $101.35/barrel on April 12. This was lower than the price of $103.17/barrel prevailing on the previous trading day of April 11.
In rupee terms also, the crude oil price went down sharply touching Rs 5,517.49/barrel on April 12 (Rs 5,625.86/barrel on April 11). This was due to fall in price in dollar terms, aided by rupee appreciation. The rupee dollar exchange rate on April 12 was at Rs 54.44 versus the dollar against Rs 54.53 versus dollar on previous trading day.
In a statement issued here, Indian Oil Corporation said it had decided to reduce the retail selling prices by Rs 1.00/litre (excluding VAT) and Rs 1.20/ litre (including VAT).
Effective April 3, prices of petrol were decreased by Rs 0.85/litre (excluding VAT) and Rs 1.02/litre (including VAT).
The price revision depends on the movement in international oil prices and rupee-dollar exchange rates. Indian Oil said that both the factors are being monitored and decisions on future price changes shall be taken accordingly.
Since the last price change, the international prices of petrol have gone down from $119.23/barrel to $116.61/barrel. Rupee-dollar exchange rate has, however, deteriorated slightly from Rs 54.28 versus dollar to Rs 54.51 versus dollar during the same period.
Thus, 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, IndianOil said.