Oil companies cut petrol, diesel prices by Rs 2
Oil companies cut petrol, diesel price by Rs 2business Updated: Feb 04, 2015 03:23 IST
Coming ahead of the crucial Delhi elections this Sunday, oil companies on Tuesday announced a cut in petrol prices by Rs 2.42 per litre and diesel by Rs 2.25 a litre in step with fall in international oil prices.
Petrol in Delhi will cost Rs 56.49 a litre from midnight on Monday as compared to Rs 58.91 now. Similarly, diesel will cost Rs 46.01 per litre as against Rs 48.26 at present.
The new prices will come into effect from Wednesday, Indian Oil Corp (IOC), the nation’s largest fuel Retailer said. Interestingly, the latest cut in auto fuel prices that came on February 3 or just ahead of February 7 polling for Delhi Assembly are generally announced on 1st and 15th of the month. The announcement assumes political significance as it comes at a time when BJP is locked in a fierce battle with AAP and with Congress party also in the fray.
This is the 10th straight reduction in petrol price since August and sixth in diesel since October. After the latest price cuts, petrol price is the lowest since September 2010 while diesel is cheapest since March 2013.
Cumulatively, petrol prices have seen a reduction of Rs 17.11 per litre in ten cuts since August and diesel by Rs 12.96 a litre since its deregulation in October.
According to industry sources, the cuts have not been fully passed on to the consumers. Even after the price reduction of Tuesday, oil companies are making a margin of Rs 4 a litre on petrol and about Rs 3.6 per litre on diesel which they want to use for recouping inventory losses.
Despite reductions, petrol will cost more than jet fuel (or ATF) A litre of ATF costs Rs 46.51 per litre in Delhi.
Petrol dealers plan nation-wide strike
Petrol pump dealers of state-owned oil companies across the country have announced a call for a one-day nation wide strike around the middle on this month. “The repeated steep cuts of petroleum products has resulted in a Rs 500 crore financial loss to 42,000 dealers across the country,” said Ajay Bansal, President of All India Petroleum Dealers Association (AIPDA).