Petrol, diesel prices cut by Rs 2 per litre in India; Delhi, Punjab and Haryana get a hike

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Following a sharp fall in global oil prices, petrol and diesel prices in India were slashed by Rs 2 per litre on Wednesday night.

Earlier, the Delhi government had decided to hike the VAT rates on petrol to 25 percent (currently 20 percent) and diesel to 16.6 percent (currently 12.5 percent) with effect from Thursday.

After the subsequent revision, however, petrol in Delhi will still be dearer by 28 paise while diesel prices will fall by 50 paise in the capital.

Meanwhile, the governments of Haryana and Punjab also raised the VAT on petrol and diesel to 16.4 percent and 13.4 percent respectively.

Over concerns on the China slowdown and oversupply, global oil prices have fallen below the $60 level for the first time since April.

The recent Iran nuclear deal is also said to have had an impact on oil prices. Last Monday, oil prices fell nearly 8 percent after Greece rejected a major referendum on bailout terms.

India imports almost 80 percent of its oil requirements and the value of rupee is also a key determinant in the prices of petrol and diesel. Despite the recent Greek crisis, the rupee has remained stable.

Petrol prices were also cut on June 30 in India by 31 paise per litre and diesel by 71 paise per litre. Oil firms review the prices of petroleum every 14 days.

 

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