Petrol Price may be Cut by 1.6 a Litre

New Delhi: Petrol price may be cut by about 1.60 per litre later this month as appreciation of rupee against the U.S. dollar has helped state firms make profit on the fuel. Indian rupee appreciated to five-month high since the government announced allowing foreign direct investment (FDI) in multi-brand retailing. This has eased the cost of imports for oil firms, helping them make profit on sale of petrol. "Yes, there is about 1.60 per litre profit on Petrol since October 1. But we want this trend to stabilise before we think of cutting retail prices," a senior executive at one of the three state-owned fuel retailers said. Petrol price was last revised on July 24 when it was raised by 70 paise to 68.48 per litre in Delhi. It was last cut on June 3 when rates were reduced by 2.02 per litre. The current profit is mainly on account of strengthening of rupee -- from 55.58 to a U.S. dollar average in the second half of August to 54.12 last fortnight. Also, the price of international gasoline, against which the domestic retail prices are benchmarked, have eased from $126.11 per barrel to $122.31. Together, these have helped oil firms, which lost about 6,000 crore in revenue on selling petrol below cost this fiscal, make profits. Rupee has further appreciated to 52.28, which would further give then scope for a price cut. "We are committed to passing on any gains that we make but all we are wanting to ensure is that this is not a temporary trend which can reverse in near future," the executive said.