Zee Media Bureau
Indian Oil Corp will cut the retail price of petrol by about 3 percent, or Rs 2.18/litre in New Delhi, from Friday as global prices of the fuel have eased since the last revision, the company said in a statement late on Wednesday.
India`s three state-run fuel retailers - IOC, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd - tend to move their prices together.
State retailers revise petrol price on 1st and 16th of every month based on average international oil price and rupee-dollar exchange rate in the previous fortnight.
Oil firms had last cut rates on August 1 by Rs 1.09 per litre, the first reduction in price since mid-April.
The government had in June 2010 freed petrol prices and since then rates have moved in tandem with the cost on most occasions.
For diesel, the government had in January 2013 decided to eliminate the subsidy in stages through monthly increases in prices by up to 50 paise per litre.
With monthly increases continuing, subsidy or losses on diesel have been trimmed to Rs 1.33 per litre but this will go up as there is a marginal increase in international gasoil (diesel) prices.
Diesel price revision is due only on September 1 as per the policy of raising rates every month.
With agency inputs
