Petrol price was cut by Rs 1.12 per litre and diesel by Rs 1.24 per litre on Thursday, the last of the fortnightly revisions, after which daily correction in rates in step with cost will be implemented.
From Friday, petrol and diesel rates will be revised in sync with any movement in international oil rates. Rates will change at 6 am every day, depending on movement in cost on the previous day.
Prior to this, prices are revised on the 1st and 16th of every month, based on the fortnightly average of international oil price and the foreign exchange rate.
The last of such revision was announced when petrol price was reduced by Rs 1.12 per litre, excluding state levies like VAT, and diesel by Rs 1.24 a litre, said Indian Oil Corp, the nation's largest fuel retailer.
Actual reduction would be higher, after taking into account local sales tax or VAT.
Petrol will cost Rs 65.48 a litre in Delhi from Friday, as against Rs 66.91 per litre currently. A litre of diesel will cost Rs 54.49, as compared to Rs 55.94 at present.
IOC said daily revision of retail selling price of petrol and diesel on pilot basis was being implemented in Chandigarh, Jamshedpur, Puducherry District, Udaipur and Visakhapatnam from 1 May.
On the same lines, IOC intends to start revising retail selling prices of petrol and diesel across the country on a daily basis with effect from 16 June. The prices declared on a daily basis shall be applicable from 6 AM to 6 AM the next day.IOC Statement
The reduction in rate announced on Thursday, comes on the back of Rs 1.23 a litre hike in petrol rates on 1 June, and Rs 0.89 a litre in diesel price.
"The current level of international product prices of petrol and diesel and Indian Rupee-US Dollar exchange rate warrant decrease in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," the statement said.
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