Petrol price was on Sunday cut to 12 paise a litre and diesel rates by 14 paise as oil companies moderated rate reduction amid the fall in global prices to absorb the hike in excise duty on fuel by the government. Petrol in Delhi now costs Rs 69.75 per litre, diesel is priced at Rs 62.44, according to a price notification of state-owned oil firms.
Delhi has the lowest fuel prices among metro cities because of lower state taxes.
Industry sources said the reduction in rates would have been higher but for the Rs 3 per litre increase in excise duty effected on Saturday.
Oil companies, they said, had been moderating reduction warranted in retail prices in anticipation of an excise duty hike. The gains they thus accumulated were adjusted against the price hike that would have been necessary because of the increase in excise duty. Some moderation in passing on the decline in international prices in the near future to domestic consumers will continue till all of the excise duty impact is recovered, the sources added.
