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.
Citing the depreciating rupee, as a matter of concern, the Union government is likely to increase diesel prices at least by Rs 3 a litre after the end of monsoon session of Parliament next week. UNion Oil Minister M Veerappa Moily said though there was no proposal to hike diesel prices for now depreciating rupee threatens to widen the government's fuel subsidy bill