In marginal relief to consumers, the oil marketing companies have cut prices of gasoline and diesel by 74 paise per liter and Rs 1.30 / liter, respectively. Oil prices were hiked sharply last week.
On April 4, petrol price was hiked by Rs 2.19 a liter and diesel by 98 paise per liter.
fuel retailers state-owned IOC, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPLC) reviewing fuel rates on 1st and 16th of each month based on the average oil price and the exchange rate in the previous fortnight . “The movement of prices in the international oil market and the exchange rate of the rupee-USD continue to closely monitor trends and market development of future price changes will be reflected” IOC has said in the past.
Consumers continue to get all the benefits of the sharp fall in international oil prices at a low decade as the government on five occasions since November has raised excise duty on the two fuels cars.
The five rate hikes totaling to Rs 4.02 per liter of petrol and diesel at Rs 6.97, giving the government an orderly Rs 17,000 crore as additional income.
In 2014 diesel prices were deregulated, giving oil marketing companies the freedom to walk or reduce prices according to the movement of the overall price.