Decision to lower petrol prices taken by OMCs: Pranab

New Delhi: Distancing himself from thereduction in petrol prices, Finance Minister Pranab Mukherjeetoday said it was a decision of oil marketing companies.

[caption id=“attachment_132866” align=“alignleft” width=“380” caption=“Oil marketing companies reduced petrol prices for thefirst time in nearly three years by Rs 2.22 a litre.Reuters”]  [/caption]

“Oil marketing companies are to take decision dependingon cost of their imports. It is market related as per as oilmarket companies are concerned on petrol,” Mukherjee toldreporters here.

Oil marketing companies reduced petrol prices for thefirst time in nearly three years by Rs 2.22 a litre. Thereduction more than erases the steep Rs 1.80 a litre hike inrate announced earlier this month.

Indian Oil Corporation (IOC) Chairman RS Butola had said thethe OMCs are passing on the gain of Rs 1.85 per litre(excluding all taxes) since the last price revision because ofa fall in global oil rates and a marginal appreciation inrupee value.

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Both the Opposition and the UPA allies had stronglycriticised the UPA for allowing state-owned oil companies toincrease petrol price at a time when headline inflation wasnearing double digits.

This is the first reduction in petrol price since January2009 when rates were cut by Rs 5 per litre. Before that, thethen Oil Minister Murli Deora had made oil firms slash petrolprices by an equal proportion in December 2008.

PTI