Petrol has become cheaper by Rs 3 a litre effective midnight of April 30, making it the third decrease this fiscal. However, diesel prices were untouched.
The prices of petrol were last decreased on April 16 by Rs 1.20 a litre and by Rs 1.02 a litre on April 2.
This decision was taken to pass on the benefits of the fall in international prices of petrol to consumers, Indian Oil Corporation said in a statement. However, the cut may not be made effective on the same day by the three PSUs – Indian Oil Corporation, Bharat Petroleum Corporation – due to the fear of attracting action by Competition Commission.
Since last price change (April 16), the international prices of petrol have gone down from around $116/barrel to around $107/barrel. The rupee-dollar exchange rate has also appreciated slightly from Rs 54.51/dollar to Rs 54.26/dollar during the same period, Indian Oil said.
The public sector oil companies sell diesel at retail outlets, kerosene (PDS), and domestic LPG at a Government controlled price.
The companies are suffering under-recovery of Rs 3.80/litre on sale of diesel (Retail), Rs 27.93/litre kerosene (PDS), Rs 379.00/cylendar domestic LPG.
Indian Oil said that the movement in international oil prices and exchange rate is being monitored and decision on future price changes shall be taken accordingly.