Oil marketing companies have decided to go for a cut in petrol prices by Rs 3.05 a litre with effect from Tuesday. As part of the monthly decontrol dose, diesel prices would be raised by 50 paise a litre. Prices of petrol were last revised upwards on September 14.
"The decrease in petrol prices has now become feasible because of reduction of minimum support prices from $117 a barrel to $113 a barrel and appreciation of the rupee against the dollar from Rs 66 a dollar to Rs 63," an Indian Oil Corporation
As part of its diesel decontrol measure, the government had given the nod to phase wise increase diesel prices with a monthly dose of 50 paise from January 17 this year.
Even after the current increase, under recovery on retail diesel shall stand at Rs 10.52 a litre.
In addition to the under recoveries on diesel, those on the sale of kerosene now stand at Rs 38.32 a litre and domestic LPG at Rs 532.50 a cylinder. For the year 2013-14, IOC is expected to incur an under recovery of Rs 73,500 crore on the sale of these three sensitive products, while industry figures are expected to be Rs 1,39,600 crore.