Petrol price declines by Rs 2.22 in Delhi, Rs 2.34 in Mumbai, Rs 2.35 in Chennai and Rs 2.31 in Kolkata

Government of India, for the first time in 3 years has decreased the price of petrol in the country. With effect from today itself, new petrol price in Delhi is Rs 66.42 per liter, new petrol price in Mumbai is Rs 71.47 per liter, new petrol price in Chennai is Rs 70.38 per liter and new petrol price in Kolkata is Rs 70.84 per liter.

Indian Govt. Official said, “The new decline in global crude oil prices have resulted in an decline of petrol prices in India by Rs 1.85 per liter, excluding all taxes.” Once the local sales tax of 20% and other charges are added, petrol price in India is declined by Rs 2.25 on average. As global crude oil prices have declined to approximately $116 per barrel today from $121 per barrel since the last price hike, Government of India and Indian oil companies have decided to pass on the benefits to Indian consumers.

Mr R S Butola, Chairman, Indian Oil Corporation, on the reduction of petrol price stated, “We had gained Rs 1.85 per litre (excluding all taxes) since the last price revision because of a fall in global oil rates and a marginal appreciation in rupee value. We are passing this on to consumers.” Mr Murli Deora, Oil Minister of India, said, “Since petrol is a deregulated commodity which moves in tandem with international rates, we are passing on the reduction to consumers.”

The other reason behind this sharp decline is the nearing winter session of Parliament of India which begins next week. Many senior members of Government of India had ridiculed the last price hike, especially at a time when the country was already reeling under double digit inflation.