Petrol Likely to Get Cheaper From Midnight

Petrol prices are likely to be reduced, effective midnight, sources told NDTV. However, the quantum of reduction was not immediately known. Diesel prices are likely to go up by 50 paise per litre, the sources said.

If the reduction takes place, it would be the first drop in petrol prices since April. Petrol prices were last slashed on April 15,  by 70 paise per litre, excluding local levies. It was the second reduction in rates in April as appreciation of the rupee against the US dollar made oil imports cheaper.

The last revision in fuel prices were undertaken on June 30 when petrol prices were hiked by Rs 1.69 per litre and diesel by 50 paise per litre, effective midnight. The government in January last year decided that diesel prices should be raised by 40-50 paise a litre every month until losses are wiped out.

The government freed petrol prices from its control in June 2010 and since then state-owned oil firms like BPCL, HPCL and Indian Oil have been revising rates on the 1st and 16th of every month based on the fortnightly average of international oil prices and the rupee-dollar exchange rate.

(With agency inputs)