 "Petrol prices may be cut by Rs 2/ltr from Wednesday")
New Delhi: Petrol prices may be cut by Rs 2 a litre from tomorrow as global oil rates have softened and the rupee has stabilised against the US dollar.
The news comes after state-run retailers announced on 12 November that they may cut petrol prices from 16 November, the first cut in nearly three years and the first in the 18 months since the government ended controls.
The cut in prices would negate the Rs 1.80 per litre petrol price hike effected earlier this month. “Gasoline (petrol) averaged $115.8 per barrel in November, as against the $121 per barrel price taken at the time of the Rs 1.80 per litre hike in petrol price.
However_, Firstpost _ had earlier reported that Brent crude, a global oil benchmark, has soared to a near seven-month high of $114 per barrel in recent days, defying predictions that prices would collapse amid the financial tumult in Europe and lower demand from a limping US economy.
The rupee that has averaged Rs 49.20 per US dollar, which is less than the October average, could also be one of the reasons for the cut, a senior official in one of the three state-run oil marketing companies said.
“The reduction in oil price warrants a cut of Rs 1.86 per litre in the petrol price, excluding all taxes,” he said, adding that retail prices may go down by about Rs 2 per litre.
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With inputs from Agencies
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