Petrol heads will sleep happy tonight and their wallets will afford a smile at a fuel-station tomorrow. However, diesel car owners will burn midnight oil thinking, if Diesel cars still make sense with the fast reducing gap between Petrol and Diesel prices. State-owned Oil companies decided to cut retail petrol prices by Rs 1.09 a litre and increase retail diesel price by 56 paise a litre with effect from midnight of July 31.
Diesel price for bulk consumers however, has been reduced by 72 paise a litre and price of non-subsidized LPG cylinder is cheaper by Rs 2.50 for a 14.2 kg cylinder and that of commercial LPG cylinder by Rs 4.00 for a 19kg cylinder. Private firms like Reliance Industries, Essar Oil and Shell are also likely to reduce prices to bring them at par with the State-owned companies. The move comes as a result of a downward trend in international oil prices and the depreciation of the Indian Rupee against a US Dollar.
After the revision, petrol will be sold at Rs 72.51 per litre in Delhi, Rs 80.30 a litre in Kolkata, Rs 80.60 in Mumbai and Rs 75.78 per litre in Chennai. Diesel will now cost Rs 58.40 in Delhi, Rs 63.22 per litre in Kolkata, Rs 66.63 per litre in Mumbai and Rs 62.30 per litre in Chennai. After the hike, the under-recovery or losses the state-owned oil companies make behind every litre of diesel will fall to Rs 1.33 a litre from Rs 1.83 a litre, taking the fuel closer to deregulation.