Petrol price cut by Rs1.15/ litre, diesel hiked by 50 paise/ litre

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petrol-price-cutNew Delhi: Oil marketing companies on Thursday decided to cut petrol prices by Rs 1.15 per litre with effect from midnight.

However, diesel rate has been hiked by 50 paise per litre.

The reduction in petrol price was possible as international oil prices have eased. Recovery in Indian rupee against dollar also made room for the cut in petrol price.

Oil prices edged lower in Asian trade today in line with regional equities, after the US Federal Reserve kept its stimulus programme unchanged.

New York’s main contract West Texas Intermediate (WTI) for December delivery slipped 20 cents to USD 96.57 in mid-morning Asian trade, and Brent North Sea crude for December dropped 30 cents to USD 109.56.

Meanwhile, the Kirit Parikh Committee has recommended that trade parity pricing formula for diesel, kerosene and cooking gas (LPG) be retained.

It suggested an increase in its retail price by Rs 4-5 per litre immediately and the remaining subsidy recovered from consumers through a monthly price hike of Re 1 per litre or oil companies be paid a fixed subsidy of Rs 6 per litre.