Petrol price was steeply cut by Rs 3.05 per litre on September 30. The price changes announced by oil companies are excluding local sales tax or VAT and will be effective midnight of September 30. It was the first reduction in rates in over five months and the steepest in over five years, while diesel prices were raised by 50 paise a litre.
Media reports says that while petrol price cut has been made possible because of appreciation in rupee value against US dollar, diesel rates are being hiked as per the practice of increase in rates by small monthly doses to cover losses.
With price cut, the petrol price in Delhi will be cut by Rs 3.66 to Rs 72.40 per litre, while it will cost Rs 79.49 per litre in Mumbai as against Rs 83.63 currently.