Petrol prices set for a Rs 4 slash on July 1 | business | Hindustan Times
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Petrol prices set for a Rs 4 slash on July 1

business Updated: Jun 27, 2012 10:12 IST
Anupama Airy
Anupama Airy
Hindustan Times
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The oil marketing companies are likely to slash the petrol prices by up to Rs 4 a litre from July 1.

The trigger: The steep fall in global prices of crude oil as well as petrol on which the companies base the domestic prices every fortnight. The price cut will come as a big respite for the consumer after the recent increase of Rs. 7.54 a litre on May 23 — the highest so far.

But senior officials in the oil companies said the price cut would come only if the global petrol prices and the rupee-dollar exchange rates hold for the rest of this month.

The officials said the price cut could have been higher had the rupee not gone through a freefall against the dollar in recent times in the currency market.

With every one-dollar decline in global prices, the domestic price declines by around Rs. 0.34 a litre, while every one-rupee fall against the dollar leads to a price rise of 75-to-80 paise a litre.

The average global petrol price has come down to $99 a barrel from $115 at the time of the last price cut of Rs 2.02 on June 2.