Petrol and Diesel Prices Fall Starting Midnight, 15 January

Petrol and diesel prices slashed fourth time since 1 December due to softening global oil prices.

Petrol and diesel prices slashed in fourth reduction of prices in the past six weeks. (Photo: iStockphoto)

Petrol price was cut by 32 paise a litre and diesel’s by 85 paise a litre, on Friday, applicable starting midnight, 15 January.

This is the fourth reduction in rates since 1 December on the back of softening global oil prices.

However, the excise duty on the fuel was however, increased by 75 paise on petrol per litre and Rs 1.83 on diesel per litre.

Rates were on 1 December – six weeks ago – cut by 58 paise a litre in case of petrol and by 25 paise in diesel. This was followed by a 50 paise a litre reduction in price of petrol from 16 December and 46 paise in case of diesel.

Petrol price, on 1 January, was cut by 63 paise per litre and diesel’s by Rs 1.06 a litre.

The reduction would have been more but for government raising excise duty on the two auto fuel to take away some of the gains from the crude oil prices slumping to 12-year low of under $30 per barrel.

The government had on 17 December raised excise duty on petrol by 30 paise and that on diesel by Rs 1.17 per litre.

This was followed by a 37 paise increase in the levy on petrol from January 3 and Rs 2 per litre on diesel.

The two duty hikes took away from customers benefit of 67 paise lower petrol price and Rs 3.17 a litre lower diesel rate but gave the government Rs 6,800 crore in additional revenue during the remainder of current fiscal.

<p>The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision.</p>

<b>IOC Statement</b>

State-owned fuel retailers IOC, Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) revise rates of petrol and diesel on 1st and 16th of every month based on average oil price and foreign exchange rate in the preceding fortnight.

<p>The movement of prices in the international oil market and Rupee-Dollar exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.</p>

<b>IOC Statement</b>