M A I N   N E W S

Petrol, diesel prices slashed

New Delhi, April 26
For the second time this month, state-owned oil firms today slashed the prices of petrol and diesel by Re 1 per litre, in tune with the global softening of crude prices.

The new prices would be effective from midnight tonight.

Petrol would cost Rs 31.49 per litre in Delhi as against the prevailing Rs 32.49 a litre while the price of diesel went down from Rs 21.12 to Rs 20.12 per litre, official sources said here.

After over three months of a surge in prices, the oil firms on April 15 announced a Re one per litre cut in petrol and diesel prices.

The fortnightly petrol and diesel price revision, which was slated to take place on April 30, was advanced as part of the government’s peace deal with truckers earlier this week, which ended their 10-day strike.

Petroleum Minister Ram Naik had at that time announced that he would "request" oil firms to prepone the price revision taking into account the easing of global crude prices.

International crude prices were on a decline since the war in Iraq started, ending the uncertainty. The Indian basket of crude, which had averaged $ 28.80 a barrel in March, slumped to $ 24.92 a barrel in the first half of April and then to $ 24.35 a barrel between April 11 and 24.

With crude prices ruling at $ 29.81 a barrel in January-March, the oil companies had increased petrol and diesel prices by around Rs 5 per litre each.

However, crude prices started declining immediately after the war started on March 20, but the oil companies did not revise downward the retail selling price of petrol and diesel on April 1 as the previous hikes did not cover the entire surge in crude prices.

Sources said Petroleum Minister Ram Naik wanted oil companies to slash prices of petrol and diesel by at least Rs 1.50 per litre, but the oil companies resisted it, saying the previous losses on selling the product below the cost of crude had to be covered now. PTI