Moily hints at a cut in petrol prices by month end

Thanks to the appreciation of rupee against the US dollar, petroleum minister Veerappa Moily on Friday indicated at a cut in petrol price in the next few days.

Thanks to the appreciation of rupee against the US dollar, petroleum minister Veerappa Moily on Friday indicated at a cut in petrol price in the next few days.

Oil company sources say the reduction could vary anywhere around Rs 2 a litre. This, when happens, will be the first reduction in petrol rates since May.

"This is all dynamic pricing system and not static pricing... any advantage of price (reduction in international rates) and rupee (appreciation against US dollar) will be passed on to consumers... consumer will get full advantage," he said.

Asked if a cut in petrol price was possible on September 30, he said "hope so."

"Petrol price is a deregulated commodity, price of which is decided by our oil marketing companies based on input cost and other parameters," he said.

The reduction in rates is likely to be announced by the month end as per the practice of fortnightly revision in prices, and has been made possible due to appreciation of rupee against the US dollar.

Petrol price was last cut on May 1 by Rs 3 per litre, the steepest reduction in rates in over five years. However, since then petrol prices have been raised or gone up by seven times, totalling Rs 10.80 per litre, excluding VAT, as rupee depreciated sharply against the rupee.

In Delhi, after the last price cut in May, petrol prices have surged by Rs 13.06 per litre after including state tax. Petrol currently costs Rs 76.06 per litre in Delhi.