The price of petrol is likely to be decreased by Rs 2.50 this Independence day. This is the second time this month that prices have been cut for petrol and will be the lowest this year.
The drop in price may be more if the downward trend in the international petrol rates continue and the rupee value increases against the price of a dollar by the 15th of August, when fortnightly review of prices is due.
At the moment, average depreciation in rupee against dollar is over 70 paise.
According to a few sources, the average international gasoline price has dropped by about USD 7.5 per barrel when compared to the previous fortnight.
In Delhi, companies reduced the price of fuel by INR 1.09 per litre from the first of August. This happened for the first time since mid-April. Presently, petrol is sold at INR 72.51 per litre in Delhi.
Sources say that the revenue losses will go up marginally from the current INR 1.33 per litre.
The oil ministry, in the meanwhile is preparing to soon approach the Cabinet with a complete fuel pricing reform plan which would end the uncertainty over subsidy sharing by state explorers such as ONGC BASE.
The ministry is thinking about a proposal of upstream companies to retain minimum of USD 65 per barrel of fuel revenue.