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Petrol Price Further Cut By 78 Paise A Litre

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[State refiners have cut petrol prices by Rs 0.78 per litre, the second reduction in two weeks. The reduction was lower than the anticipated Re 1 per litre because of firming of international prices and drop in rupee during past 48-hours. Petrol in Delhi will cost Rs 65.64 per litre against Rs 66.42 a litre currently. The reduction comes on back of a 3.2 per cent or Rs 2.22 per litre cut in rates effected from November 16, the first reduction in retail prices in nearly three years and the first since prices were decontrolled in June 2010. Refiners discuss prices every two weeks and so far in this fortnight, spot FOB gasoline prices in Singapore have averaged $108.76 a barrel compared with $114.13 in the previous fortnight, according to Reuters calculations. India's three state fuel retailing giants, IOC, Hindustan Petroleum Corp and Bharat Petroleum Corp tend to move their prices in tandem. Petrol is nowhere near as widely used as diesel in India -- accounting for around 10 percent of fuel demand compared with about 40 percent for diesel -- but it is high-profile because it powers many of the cars owned by the growing middle class. Gasoline has a 1.09 percent weighting in the inflation index and near double-digit consumer prices have provoked criticism of the government, which subsidises other fuels such as diesel and cooking gas. The widening price gap between gasoline and diesel has slowed the growth of gasoline consumption, which has recently fallen behind that of diesel. (Agencies)