Petrol Gets Cheaper Not Diesel

We had earlier reported that the government and oil companies plan to reduce the price of petrol across India. Yesterday it was confirmed that effective on 31st July, 2014 post midnight, petrol would get cheaper by Rs 1.09. However, diesel prices would not reduce but have been increased by 56 paise per litre.

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The dip in fuel price is due to the international prices, that have taken a beating. Price of petrol, diesel and LPG have reduced globally. Meanwhile, the rupee has depreciated compared to the dollar; it is not a very high increase.

State owned oil marketing companies have, however, reduced the price of diesel only for bulk users, it will be cheaper by 72 paise per litre. LPG prices have also dipped to Rs 2.50 for the non-subsidized cylinder. While, prices of commercial LPG cylinder has also been decreased by Rs 4.

In an attempt to keep up with State owned oil marketing companies, even private oil companies will reduce prices. Shell, Essar and Reliance are looking at possibilities to reduce petrol prices to increase competition. This is a good move as vehicle owners can have a wider choice at more affordable pricing.

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The last reduction in petrol prices were back in April, 2014, and since then the prices were increased. However, the depreciation of petrol globally has resulted in the price slash. The government and oil companies have opted to provide the benefit to users.

Oil companies were earlier planning not to pass over the benefit in case prices increase again. The companies are allowed to decide whether or not they would increase or decrease prices of fuel. This time they have decided to please and provide some sort of relief to owners of vehicles.

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