Domain-B: Oil marketing companies today announced a partial roll-back of the steep Rs7.54-a-litre hike in petrol prices effected over a week ago by announcing a Rs1.68 2.02 reduction in its prices from midnight tonight. The Rs1.68 reduction brings down petrol price in Delhi by Rs2.02 a litre, including a 20 per cent VAT. The reduction, brought about following sharp criticism over the steepest hike in the price of petrol in recent times, comes in the wake of a sharp fall in the prices of crude oil in the international market. The price of North Sea Brent crude hit $98 a barrel on Friday amidst growing concerns over global economic growth. The price of the Indian basket of crude, which hit a low of $101.63 a barrel on Thursday, is also expected to have fallen further after the Friday's dip overseas. A release issued by the ministry of petroleum and natural gas, however, said under recoveries of state-run oil refining and marketing companies remained high on diesel, PDS kerosene and domestic LPG effective 1 June. With this reduction, petrol in the national capital Delhi will cost Rs71.16 per litre from midnight tonight against Rs73.18 at present. Oil marketing companies follow a fortnightly calendar for review of petrol prices – at the start of the month and by 16th of each month, although the last hike came a bit late on 24 May. OMCs attribute the steep Rs7.54 a litre increase in petrol prices to the average crude oil price of $124.37 per barrel and a rupee-dollar exchange rate of Rs53.17 in the first fortnight of May. The rupee value, however, has gone down since while crude prices are down below $100 a barrel at present. The hike in petrol prices was opposed even by members of the ruling coalition, including the Trinamool Congress and the Dravida Munnetra Kazhagam (DMK), besides the general consumer. The Left parties and opposition National Democratic Alliance (NDA) had on Thursday organised a nationwide strike in protest against the petrol price hike. Source: Domain-B
