Within a fortnight of a Rs. 1.82 a litre hike effected by oil marketing companies, the petrol price stands slashed by a higher margin of Rs. 2.22 from Tuesday midnight.
The reduction, the first in three years, is expected to ease the pressure on the government ahead of the Parliament's winter session.
The hike drew flak from the Opposition and UPA allies alike for casting an additional burden on the common man at a time when inflation remained perilously close to double digits.
With this roll-back, petrol will be cheaper at Rs. 66.42 a litre in Delhi, against Rs. 68.64 hitherto. In Mumbai, it will be Rs. 2.34 less at Rs. 71.47.
In Kolkata, it will stand reduced by Rs. 2.31 at Rs. 70.84. In Chennai, it will be lower by Rs. 2.35 at Rs. 70.38.
Explaining the rationale for the price cut, Indian Oil Chairman R.S. Butola said that since the last price revision earlier this month,
IOC had gained Rs. 1.85 per litre (excluding all taxes) owing to a decline in global oil prices and a marginal appreciation in value of the rupee. This was being passed on to consumers.
The balance reduction will be owing to the commensurate cut in local taxes in various states.
PTI adds: State-owned oil companies have hiked jet fuel prices for the second time this month, raising rates by a steep two per cent with effect from midnight on Tuesday.
“The price of aviation turbine fuel [ATF], or jet fuel, at Delhi's T3 airport was raised by Rs. 1,195 per kilolitre, or 1.95 per cent, to Rs. 62,310.33 per kl with effect from midnight tonight,” an official of Indian Oil said.
The increase comes on back of a massive 3.8 per cent or Rs. 2,845 per kl hike in rates effected from November 1.
But for a one-off marginal reduction in mid-October, ATF prices have been on the climb since September.