Petrol prices slashed by Rs 2.46 per litre

Just earlier in the day, we had reported that the cost of petrol could be cut by Rs 4 on 1 July 2012 due to the slip of international crude oil price to its lowest level, since December 2010. However, the oil ministry has just announced a roll back of Rs 2.46 per litre of petrol, which will be put into effect from today midnight. 

State-owned fuel retailers, who as per practice revise rates of petrol on 1st and 16th of every month based on average imported cost and forex rates of the previous fortnight, had skipped changing rates on June 16. After this cut , petrol will cost Rs 67.78 a litre at IOC petrol pumps in Delhi.

After the massive hike in price of petrol of Rs 7.50 that was put in effect in May 2012 the government had rolled back the cost by Rs 3 per litter in June, following nationwide protests from tax-paying citizens of India. 

Also yesterday, there were reports suggesting that the oil ministry is planning to bring in a system wherein the cost of petrol will be revised on a daily basis in tune with rupee's value against the U.S dollar. Such a system, is already being functioning in the United States, Europe and Brazil.