Petrol prices have been cut by Rs 2.22 per litre with effect from midnight on Tuesday. The drop is due to softening global oil rates and the rupee has stabilising against the US dollar.
Reports from earlier today had hinted the cut in prices would negate the Rs 1.80 per litre petrol price hike effected earlier this month.
"Gasoline (petrol) averaged USD 115.8 per barrel in November, as against the USD 121 per barrel price taken at the time of the Rs 1.80 per litre hike in petrol price. Also, the rupee has averaged Rs 49.20 per US dollar, which is less than the October average," a senior official in one of the three state-run oil marketing companies said.
"The reduction in oil price warrants a cut of Rs 1.86 per litre in the petrol price, excluding all taxes," he said, adding that retail prices may go down by about Rs 2 per litre.