State run oil companies have decided to cut Petrol prices by Rs 2 per litre which will be effective from midnight Saturday.
State-owned oil firms will reduce petrol price by Rs 1.68 per litre, excluding taxes. After including 20 percent VAT, the cut in Delhi comes to Rs 2 per litre, industry sources said.
The oil firms had last week hiked petrol price by a steep Rs 7.54 per litre. The hike was done considering an average gasoline price of USD 124.37 per barrel and a rupee-dollar exchange rate of Rs 53.17 in the first fortnight of May.
Gasoline price have since fallen to USD 115.77 per barrel in the second fortnight but rupee-dollar rate has worsened to Rs 54.96 to a US dollar during the period.