Petrol price slashed by 56 paise per litre

It may not relieve most petrol vehicle owners but state oil firms have decided on a price cut of 56 paise per litre of petrol. “It has been decided to revise petrol prices downward by Rs 0.56 per litre excluding state taxes from Tuesday. There has been significant volatility in international oil prices and INR-USD exchange rate. The trends in the international oil market and INR-USD exchange rate shall be closely monitored and the same shall be reflected in future price changes,” stated an official from Indian Oil Corporation. This has been done due to the significant appreciation of the rupee against the dollar. Also Read: Petrol price rises by 70 paise a litre

Petrol pump dealers told ET that they expect a Rs 0.57 hike in dealers’ commission on the fuel due to rising maintenance and storage costs. The margin increase will eventually reach the consumer. So, will the decline in petrol price really pass on to the consumer? The bigger picture is that diesel will rule the roost until an effective solution for fluctuation fuel costs is brought up.