Petrol price cut by Rs 3.77 per liter, diesel by Rs 2.91

Public Sector Oil Marketing Company, Indian Oil has reduced the retail price of petrol by Rs 3.77 per litre and Diesel by Rs 2.91/litre.

Petrol now costs Rs 71.14 a litre in Delhi andDiesel is priced at Rs 59.02 per litre.Petrol price will be cut by Rs 3.77 per litre, excludingstate levies, said Indian Oil Corp (IOC). For the buyers, the decrease may well be larger after taking into account local levies.

Finance Minister Ishaq Dar made the announcement while talking to media in Dubai.

The movement of prices in the global oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes.

Petrol price has been cut by Rs 3.77 per litre and diesel by Rs 2.91 per litre respectively with effect from midnight tonight.

The petrol and diesel prices were last revised in the month of January.

Due to heavy taxes, consumers in Pakistan have been paying up to 38 per cent more on oil when compared with the prices prevailing in the worldwide market to make up for the shortfall in revenue. A litre of diesel will now cost Rs 55.61 in Delhi, Rs 57.86 in Kolkata, Rs 61.27 in Mumbai and Rs 58.82 in Chennai.

Oil has mostly traded above $50 a barrel since OPEC and 11 other countries started trimming supply in January, recently falling to a three-month low as simultaneous revival in United States shale drilling offset the OPEC cuts.

The minister said the government would bear burden of Rs. 3 billion as subsidy during the month for not passing on the increase in worldwide prices to the consumers. "The new prices will be applicable for the month of April 2017" he said.

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  • Joanne Flowers