State-run oil retailers have reduced petrol prices by Rs. 0.78 (78 paise) per litre, with effect from Wednesday, November 30. At present, petrol costs Rs 65.64 a litre which was earlier Rs. 66.42 per litre.
The price cut was possible because the decline in international rates of the crude oil was higher than the depreciation of the rupee. International crude oil prices have come down to $ 109 from $ 116 per barrel. Sadly, the exchange rate has dropped from Rs 49.32 to Rs 51.50 against the dollar. Hence, oil companies have not been able to pass on the complete benefit of declining international oil prices to Indian customers.
Since the deregulation of petrol prices in June 2010, oil companies have been increasing the prices of petrol at regularly. They have the freedom to revise petrol prices every fortnight. However, the first price cut of Rs. 2 was announced on November 15th due to reduction in international oil prices. And now, the second price cut of Rs. 0.78 was announced yesterday (November 30th).
It has to be noted that oil companies increased the price of petrol by Rs. 1.80 on November 3. During the first price cut of Rs. 2 per litre, the actual reduction was only 18 paise. Now, adding to that the second price cut of Rs. 0.78, the total reduction of petrol price at the end of November is Rs. 0.96 only. For instance, a Hyundai i10 owner who drives for 1000 km per month can save roughly Rs. 367 annually on his fuel expenses.
The following are the revised petrol prices in five cities across India with effect from December 1st.
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