After seven successive hikes since June, the petrol price has been reduced by Rs 3.05 a litre, excluding local taxes. However, diesel prices have been hiked by 50 paise a litre, excluding State levies. The revised prices are effective Monday midnight.
On September 14, the price of petrol was last increased by Rs 1.63 for every litre, excluding State levies.
The reduction in the price of auto fuel is because of international petrol price showing a downward move from about $ 117a barrel to $ 113 a barrel, Indian Oil Corporation said in a statement adding that this is coupled with the appreciation of Rupee against Dollar from about Rs 66 to about Rs 63 for each dollar.
Both these factors have resulted in the reduction of petrol prices which is being passed on to the consumer, the company said.
The Government has allowed public sector oil marketing companies to increase the price of diesel to fill in the gap between selling and market price, commonly known as under-recovery. But, even after the current increase it would sell diesel Rs 10.52 a litre below market cost.
The movement of prices in international oil market and rupee-dollar exchange rate is being closely monitored and developing trends of the market will be reflected in future price changes, IOC added.
Meanwhile, the Government is examining draft report of Kirit Parikh panel on fuel pricing, which has suggested that the diesel prices should be increased by Rs 1-1.50 a litre every month as against the 45-50 paise monthly hike followed currently. This is expected to help the public sector oil marketing companies sell diesel at market rate in two years time.