Aided by the falling international crude prices, the oil marketing companies on Saturday announced a cut of Rs. 2.02 a litre in petrol prices, the reduction came into effect on Saturday night.
The reduction, a result of fall in international oil prices, will mean that petrol in Delhi will cost Rs 71.16 per litre from midnight tonight, as against Rs 73.18 at present.
The decision, flowing out of the fortnightly review by oil marketing companies, came as some relief for consumers battered by double-digit inflation and the May 24 hike which was the steepest ever that came on top of two increases in a year.
The May 24 hike had come under sharp attack from all political parties including allies like TMC and DMK.
The Left and NDA had on Thursday organised a nationwide strike in protest against the hike.
Last week’s steep Rs 7.54 per litre hike was done considering an average gasoline price of USD 124.37 per barrel and a rupee-dollar exchange rate of Rs 53.17 in the first fortnight of May.
Gasoline price have since fallen to USD 115.77 per barrel in the second fortnight but rupee-dollar rate has worsened to Rs 54.96 to a US dollar during the period.
The fall meant that petrol rates be cut by Rs 1.68 per litre, excluding local sales tax or VAT.
In Delhi, after including 20 per cent VAT, the reduction will be Rs 2.02 a litre.