M A I N   N E W S

Petrol cheaper by Rs 2; diesel price unchanged
Tribune News Service

New Delhi, March 15
Petrol price was today cut by Rs 2 per litre from midnight tonight while there is no change in diesel prices. Petrol price lower by Rs 2 per litre, excluding local sales tax or VAT, is the sharpest cut in nine months, after two consecutive price increases. After including VAT, the reduction in price of petrol in Delhi comes to Rs 2.40 per litre and the fuel will from midnight tonight cost Rs 68.34 per litre as against Rs 70.74 currently.

It was expected that oil firms will also effect the monthly hike of 40-50 paise per litre in diesel rates but they deferred the decision apparently due to concerns over uproar in Parliament. When oil firms had last hiked petrol price on March 2, the Opposition parties had disrupted one full day's proceedings. The Cabinet decision to raise diesel prices had said that “oil companies may raise prices periodically in small quantities.” Thereafter, the government had indicated that this would be a monthly fixture in which prices are raised by 40-50 paise.

The cut in petrol price follows two rounds of hike in rates since February. Petrol price was hiked by Rs 1.50 a litre on February 16 and then by Rs 1.40 per litre from March 2. Both the increases were excluding local VAT.