Petrol price cut by Rs.9.36 per litre since August

New Delhi: Petrol price was cut by Rs 2.41 a litre, the sixth reduction since August, and diesel by Rs 2.25 per litre on back of falling international oil rates.

The reduction in rates of petrol and diesel, which was deregulated for the first time in more than a decade, will be effective from Friday midnight, Indian Oil Corp, the nation's largest fuel retailer, announced.

The Rs 2.41 a litre price cut in petrol and Rs 2.25 in diesel was after accounting for a 10-15 paise increase in commission paid to petrol pump dealers. Petrol will cost Rs 64.25 a litre in Delhi as against Rs 66.65 currently. In Mumbai, the rate will be cut by Rs 2.55 a litre to Rs 71.91. Since August, petrol price has been cumulatively cut by Rs 9.36 per litre.

Diesel rates have been cut for the second time this month. The nation's most consumed fuel will now cost Rs 53.35 per litre in Delhi from Saturday compared to Rs 55.60 a litre at present.

The government had on October 18 freed diesel prices from its control, giving freedom to oil marketing companies to adjust rates in line with cost. On that day, rates were cut by Rs 3.37 per litre, the first reduction in price of diesel in over five years. The previous decline dates back to January 2009.

Simultaneously, the price of non-subsidised cooking gas (LPG) was cut by Rs 18.5 to Rs 865 per 14.2-kg cylinder.