The Telegraph
Sunday , August 31 , 2014
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Fuel rate rejig

New Delhi, Aug. 30: Petrol prices were cut by Rs 1.80 a litre, excluding taxes, from midnight tonight as global crude rates softened and the rupee appreciated against the dollar. This is the third straight cut in petrol prices. However, diesel prices were hiked by 50 paise as part of the government’s move to de-control the fuel with monthly hikes.

Motorists in Calcutta will now pay Rs 76.14 for a litre of petrol, a cut Rs 1.89. Diesel prices have been increased by 59 paise to Rs 63.81 a litre in the city.

“This reduction was mainly on the back of a declining trend in international petrol prices. Since the last price change, petrol rates have continued to show a downward trend and the rupee-dollar exchange rate has also appreciated slightly. The current levels of international oil prices and the exchange rate warrant a decrease in the selling price of petrol,” IOC said.

State-owned oil firms had cut petrol prices on August 1 and on the eve of Independence Day celebrations this year as global prices softened.

Finance minister Arun Jaitley said the diesel prices would be decontrolled and market determined once the gradual increase in transporters’ fuel bridges the gap. Analysts expect fall in global crude prices to lower the government’s subsidy burden and help contain fiscal deficit within the limits.