After a hike in fuel prices by about Rs 7.5/litre in the previous month, oil companies for the second time in a row have slashed petrol prices. This is due to the fact that the cost of oil barrel have been slashed despite the weakening of Rupee. This reduction in cost of crude oil has helped to reduce the pricing further.
From Wednesday midnight, petrol prices are Rs 73.35 in Mumbai, Rs 67.78 in Delhi and Rs 72.74 in Kolkata. Before this, we had seen a reduction of Rs 2.02/litre, just a few days ago. Indian Oil Corporation stated in one of its recent releases, “In the current fiscal, the industry has accumulated losses of Rs2,323 crore on Motor Spirit sales due to OMCs’ inability to revise prices in line with high international oil prices and eroded USD-INR exchange rate during that period.