Petrol prices to be slashed by Rs 1.89-2.38/litre from tomorrow

Petrol price will be cut by Rs 1.89 to 2.38 per litre from August 15, 2014. Oil Minister Dharamendra Pradhan today said that petrol price in country will be decreased as a result of softening in international rates. While on Tuesday Indian Oil Corp (IOC), country’s largest fuel retailer had indicated that petrol prices may be cut due to the decreasing international crude prices. Petrol price will be cheaper by Rs 2.18 in the capital city Delhi while depending on the state taxes, petrol prices will be decreased upto Rs 2.38 in some cities.

Oil Minister Pradhan, defying conventional methods of calling press conferences, chose the social network to announce the cut in fuel prices. Mr. Pradhan tweeted about the change in fuel prices "in the range of Rs 1.89-2.38" per litre. Prices vary depending on cities and states because of local taxes.

IOC chairman B Ashok said, "Petrol is a decontrolled product and prices increase or decrease depending on input cost every fortnight. We had cut rates on August 1 and will be reviewing prices on August 15."

The oil companies first reduced the prices of petrol on August 1 by Rs 1.09 per liter and this reduction would be from the 68th Independence day. Petrol in Delhi currently costs Rs 72.51 per liter.

Indian Oil Corp said in a news release, “Since last price change, while international petrol prices have further declined, the rupee-dollar exchange rate has significantly depreciated. The current levels of international oil prices and exchange rate warrant a decrease in selling price of petrol in the domestic market."

With the decrease in petrol price, the joy of independence is further triggered as youngsters can now save couple of bucks which though seems very marginal but if you look at the bigger picture with every 20 litre of petrol filled, you save upto Rs 40.