Petrol price will be cut by Rs. 1.89-2.38 per litre on Friday, Oil Minister Dharamendra Pradhan said on Wednesday.
Indian Oil Corp (IOC), the nation's largest fuel retailer had indicated on Tuesday that petrol prices may be cut on the back of softening in international rates.
"Petrol is a decontrolled product and prices increase or decrease depending on input cost every fortnight. We had cut rates on August 1 and will be reviewing prices on August 15," IOC chairman B Ashok told reporters here.
State retailers revise petrol price on 1st and 16th of every month based on average international oil price and rupee-dollar exchange rate in the previous fortnight.
Oil firms had last cut rates on August 1 by Rs. 1.09 per litre, the first reduction in price since mid-April. Petrol currently costs Rs. 72.51 per litre in Delhi.
This will be the second reduction in rates this month.
The government had in June 2010 freed petrol prices and since then rates have moved in tandem with the cost on most occasions.
For diesel, the government had in January 2013 decided to eliminate the subsidy in stages through monthly increases in prices by up to 50 paise per litre.
With monthly increases continuing, subsidy or losses on diesel have been trimmed to Rs. 1.33 per litre but this will go up as there is a marginal increase in international gasoil (diesel) prices.
Diesel price revision is due on September 1 as per the policy of raising rates every month.
NDTV
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