Oil companies have announced a price cut of Rs 0.78 per litre of petrol, the second reduction in two weeks, effective from Wednesday midnight.
The cut was, however, lower than the anticipated cut of Rs one per litre because of drop in rupee and firming of international prices during the past two days. Petrol in Delhi will cost Rs 65.64 per litre as against Rs 66.42 a litre earlier.
This was the first cut in retail prices in nearly three years and the first since prices were de-controlled in June 2010. Before this, oil companies on November 4 raised petrol price by Rs 1.80 per litre as fall in rupee value increased the cost of oil imports.
Indian Oil Corp (IOC), the market leader which announced the latest cut in price on behalf of the industry, said the reduction was made possible as the decline in international rates of the fuel outweighed the drop in the rupee value. "The combined impact of the two factors is an over-recovery of Rs 0.65 per litre (excluding taxes)," it said in a statement.