It has turned out to be a perfect festive week, with public sector oil marketing companies (OMCs) announcing about Re 1/litre cut in petrol prices at the retail end effective tonight.
“It has been decided to revise petrol prices downward by 95 paise a litre (excluding State levies) with effect from November 16,” an Indian Oil Corporation (IndianOil) statement said.
A similar reduction has been announced by Hindustan Petroleum Corporation and Bharat Petroleum Corporation.
The reduction varies from city to city, depending on the local taxes.
An indication of the cut had come last Friday when IndianOil Chairman R. S. Butola had said that his company was likely to take a decision on revising petrol prices shortly.
There were two things that attracted attention this week — the 2G spectrum auction and a possible petrol price cut.
In both cases, the Government had a point to prove. On petrol price, it had to convey the message that oil companies were free to tweak prices, although this may be far from reality.
Meanwhile, oil companies are exercising caution.
“At present, the international oil prices are relatively stable. However, there has been significant volatility in the rupee-dollar exchange rate, with uncertainty about its future direction,” IndianOil said.
Also, it said that “the trends in the international oil market and rupee-dollar exchange rate are being closely monitored and the same shall be reflected in future price changes.”