New Delhi: There is finally good news for all of us. After a nationwide outrage over the recent fuel price hike, oil marketing companies have reduced petrol prices by Rs 1.85 per litre before VAT.
What this means is that in Delhi, petrol will be Rs 2.22 cheaper per litre from midnight. And while Mumbaikars will now pay Rs 2.34 lesser per litre, in Chennai and Kolkata petrol prices have come down by Rs 2.35 and Rs 2.31 respectively.
A statement released by the country's largest oil marketing company said "Indian Oil reviews the motor spirit prices on fortnightly basis and based on the review, fixes the prices for the next fortnight. In keeping with this practice, Indian Oil has reviewed the pricing cycle as prevalent in the last fortnight."
"The review reveals that at the current prices, there will be an over-recovery of Rs.1.85 per litre. It has, therefore, been decided to revise the MS (motor spirit) prices downward by Rs.1.85 (excluding state taxes and levies) with effect from Nov 16," the company added.
Denying that the government was under pressure from allies like the Trinamool, Union Minister Sri Prakash Jaiswal said, " There was no pressure on the government. It was not question of allies pressure or the UP elections. Our government has already said if international prices go up, retail prices will go up, if it comes down, retail prices will come down."
Congress' spokesperson Janardhan Dwivedi said, "The Congress party welcomes the decision to reduce petrol prices. It will provide relief to the common man."
Prices have been raised four times this year, the last two price hikes coming within two months of each other. Petrol prices went up by Rs 3.14 in September and then by Rs 1.82 two weeks ago, causing much outrage among people and political parties.
Last week, RS Butola, the Chairman of the state-owned Indian Oil Corporation (IOC), India's largest fuel retailer, said the oil companies would cut petrol prices by today, as long as crude prices continued to fall globally.
In an exclusive interview , Mr Butola had said that oil companies were committed to passing on any benefit from lower prices to consumers, even though they had already incurred a loss of around Rs. 2,500 crores on the sale of petrol this year.
Petrol was deregulated or freed from government control in June 2010. This allows oil companies to raise or lower prices in keeping with global market dynamics.
What this means is that in Delhi, petrol will be Rs 2.22 cheaper per litre from midnight. And while Mumbaikars will now pay Rs 2.34 lesser per litre, in Chennai and Kolkata petrol prices have come down by Rs 2.35 and Rs 2.31 respectively.
A statement released by the country's largest oil marketing company said "Indian Oil reviews the motor spirit prices on fortnightly basis and based on the review, fixes the prices for the next fortnight. In keeping with this practice, Indian Oil has reviewed the pricing cycle as prevalent in the last fortnight."
"The review reveals that at the current prices, there will be an over-recovery of Rs.1.85 per litre. It has, therefore, been decided to revise the MS (motor spirit) prices downward by Rs.1.85 (excluding state taxes and levies) with effect from Nov 16," the company added.
Denying that the government was under pressure from allies like the Trinamool, Union Minister Sri Prakash Jaiswal said, " There was no pressure on the government. It was not question of allies pressure or the UP elections. Our government has already said if international prices go up, retail prices will go up, if it comes down, retail prices will come down."
Congress' spokesperson Janardhan Dwivedi said, "The Congress party welcomes the decision to reduce petrol prices. It will provide relief to the common man."
Prices have been raised four times this year, the last two price hikes coming within two months of each other. Petrol prices went up by Rs 3.14 in September and then by Rs 1.82 two weeks ago, causing much outrage among people and political parties.
Last week, RS Butola, the Chairman of the state-owned Indian Oil Corporation (IOC), India's largest fuel retailer, said the oil companies would cut petrol prices by today, as long as crude prices continued to fall globally.
In an exclusive interview , Mr Butola had said that oil companies were committed to passing on any benefit from lower prices to consumers, even though they had already incurred a loss of around Rs. 2,500 crores on the sale of petrol this year.
Petrol was deregulated or freed from government control in June 2010. This allows oil companies to raise or lower prices in keeping with global market dynamics.
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