State-owned Indian Oil Corporation (IOC) Thursday announced to cut petrol price by Rs 2.46 per litre. It would be the second reduction in June.
"It has been decided to revise MS prices downwards by Rs 2.46 per litre (excluding state levies) wef midnight of June 28-29, 2012," IOC said in an official release issued here.
The downward revision will vary from Rs 2.46/litre to Rs 3.22/litre (including State levies) depending upon the state taxes.
In Delhi, the price decrease will be Rs 2.46/litre as the impact of State tax will be nil on reduction till the price levels as on May 23, 2012 as per VAT exemption order dated June 16, 2012, of Delhi government.
The decrease in other states will vary depending upon the respective rates of state VAT/Sales Tax.
Petrol price in Delhi will cost Rs 67.78 per litre as compared to Rs 70.24 a litre rate now.
The reduction in rates follows a Rs 2.02 a litre cut in prices from June 3. The two price cuts have wiped out more than half of the massive Rs 7.54 per litre increase in rates, the biggest in the history, effected last month.
Even after today's reduction, there exists a scope for cutting rates by a further Re 1 per litre as current revision was done at average international oil rate in the first fortnight of June. Global oil prices have fallen by 8% since then.
State-owned oil firms abandoned the practice of revising rates of petrol on 1st and 16th of every month and from now on will now do so on a random date so as to deter petrol pump dealers building positions.
Indian Oil Corp, the nation's largest fuel retailer, said the three oil firms are projected to lose a record Rs 151,000 crore in revenue on sale of diesel, domestic LPG and kerosene, whose rates have not been revised in past one year.