Petrol price cut by 1.82, diesel up 50p

New Delhi: The petrol price was on Saturday cut by 1.82 a litre, the third reduction in rates in August, but diesel rates were hiked by 50 paise per litre. The revised rates were effective from Saturday midnight, oil companies announced.

State- owned oil marketing companies on Saturday cut petrol prices by ` 1.82 a litre in the national capital due to softening of international oil prices.

There will be similar decease in petrol price in other states depending on local taxes.

However, diesel prices were hiked to 50 paise a litre.

This is third reduction in petrol prices this month. There has been a decrease in crude oil prices.

This occurs despite fears earlier that the civil war in Iraq will result in surge in its prices.

During the initial stages of Iraq civil war, crude oil prices had increased with Indian basket of crude oil price reaching around $ 112 a barrel and since then it had starting falling, even reaching $ 99 a barrel. It was at $ 101 a barrel on Thursday.

Petrol prices were cut by 90 paise (` 1.09 a litre after including local sales tax) on August 1 and again by ` 1.81 (` 2.18 per litre, after including VAT) on 15th August.

Petrol in Delhi will now cost ` 68.51 a litre from ` 70.33 currently.

“Since last price change, ( international) petrol prices have continued to show a downward trend and the Indian Rupee- US dollar exchange rate has also appreciated slightly,” said the Indian Oil Corporation.

This warranted a decrease in selling price of petrol in the domestic market, added the Indian Oil Corporation.