Even as inflation has been growing at a steady pace, with prices of onion spiraling through the top, the petrol prices were reduced Monday for the third time this month.
While the petrol price was cut by Rs 2 per litre, diesel rate was reduced by 50 paise a litre. The new rates will be effective from the midnight of August 31 and September 1.
“Since last price change, there has been a decrease in international prices of both petrol and diesel. However, INR-US Dollar exchange rate has depreciated during this period. The impact of both these factors warrants a downward revision in prices, the impact of which is being passed on to the consumers with this price decrease,” Indian Oil Corporation or IOC – the country’s largest fuel retailer – said in a statement.
Fuel prices were last revised on August 14, when the price of petrol was lowered by Rs 1.27 per litre while that of diesel was slashed by Rs 1.17 a litre.
Oil marketing companies (OMCs) review the prices of petrol and diesel every fortnight and move on the rates depending on global oil prices.
Petrol and diesel prices are both decontrolled, which means the government doesn’t interfere in the pricing and the OMCs are free to revise rates depending on international crude prices.