Petrol prices have been cut by 78 paisa per litre (from midnight tonight) following a drop in international crude oil prices.
In the fortnightly review of international crude prices and the exchange rate, it has been found there was a over-recovery of 65 paisa. Therefore, petrol price was being cut and this was being passed on to the consumers which after state taxes will be around 78 paisa at the petrol pump.
According to an IOC statement, the fortnightly review showed a further downtrend in international crude oil prices and a further weakening in the rupee-dollar exchange rate. While crude oil has moved down from $116 per barrel to $109, the exchange rate has deteriorated from Rs 49.32 to a dollar to Rs 51.50. The combined effect of these factors is an over-recovery of 65 paisa per litre.
However, the IOC said that the current trend is that of rising crude oil prices and further weakening of the rupee which will have an impact in the next revision. The last revision of petrol prices was on November 16 when prices were cut by Rs 1.85 per litre excluding state taxes. On regulated products, namely diesel, cooking gas and kerosene, the IOC said that while petrol prices have declined, these products have shot up thereby further adversely affecting under-recoveries.