The first day of the current fiscal began with public sector oil companies reducing the retail price of petrol by 85 paise/litre (excluding value added tax) effective midnight of Monday/Tuesday.
This is a second cut since March 16, when the prices were reduced by Rs 2/litre (excluding VAT).
The prices of non-subsidised domestic cooking gas were also cut by Rs 3 a litre from Monday. A 14.2-kg non-subsidised LPG cylinder will now cost Rs 901.50 in Delhi. The Government has restricted supply of subsidised domestic LPG cylinders to nine, beyond which the customers will have to pay market prices.
However, prices of diesel remained unchanged. The oil retailers have been allowed by the Government to increase diesel prices by 45 paise a litre (excluding VAT) in small doses till they are able to neutralise their loss on selling the product at a controlled price.
Diesel prices were last increased by 45 paise a litre (excluding VAT) on March 22. This was the second increase since February 16 and third since January.
Oil companies review petrol, diesel prices on a fortnightly basis, while cooking fuel prices are reviewed on a monthly basis.
In a statement, Indian Oil Corporation said since the last price change, the international prices of petrol have gone down from $122.74/barrel to $119.23/ bbl. Besides, the rupee-dollar exchange rate also declined marginally from Rs 54.40 to Rs 54.28 during the same period.