State-fuel retailers could cut retail prices of petrol by about two rupees a litre from next month if global oil prices and the rupee stabilise at current levels, said S Roy Choudhury, chairman of Hindustan Petroleum Corp.
State-fuel retailers are slated to review retail petrol prices on May 31. Indian firms last week raised retail petrol prices by 6.28 rupees a litre excluding taxes, translating to a hike of 7.54 rupees per litre at the retail level. To soften the blow of the steep rise, many states including Delhi have reduced local taxes on the increased component, restricting the rise to 6.28 rupees a litre.
This is the steepest hike in petrol price ever, the previous high being Rs 5 per litre. Oil firms had twice raised rates by Rs 5 per litre – on May 15, 2011 when prices in Delhi were hiked from Rs 58.37 a litre to Rs 63.37 per litre and on May 24, 2008 when rates were raised to Rs 50.56 a litre.
The government had decontrolled petrol price in June 2010 but rates were last increased on November 4 last year. This despite oil price rising by 14.5 per cent and 3.2 per cent fall in value of rupee against the US dollar.