State-owned oil firms on Tuesday decreased retail selling price of petrol and diesel by up to Rs 1.08 and Rs 1.18 per litre, respectively, in step with the global softening of crude prices.

The new prices would be effective from midnight of Tuesday.

PETROL:

DIESEL:

Petrol would cost Rs 32.49 per litre in Delhi as against the prevailing Rs 33.49 a litre, while diesel prices have gone down from Rs 22.12 to Rs 21.12 per litre, official sources said in New Delhi.

The decrease in prices comes after a prolonged spell of hike in petrol and diesel prices.

Petrol prices in Kolkata have been decreased by Re 1 to Rs 34 per litre, while in Mumbai a litre of petrol would now cost Rs 37.52 as opposed to prevailing Rs 38.59.

Chennai saw a Re 1.08 per litre decrease in petrol prices to Rs 35.48.

Diesel prices in Kolkata declined from Rs 23.51 to Rs 22.52 per litre. In Mumbai, the fall was of Rs 1.18 per litre to Rs 26.70, while in Chennai diesel prices slipped from Rs 24.65 per litre to Rs 23.55 per litre.

International crude prices are on a decline since the war in Iraq started, ending the uncertainty. From a three-month high of $34.73 a barrel prior to the war, crude prices have fallen to less than $24 a barrel.

During the last three months, petrol and diesel prices had gone up by around Rs 5 per litre each, reflective of volatility in the international markets which were uncertain about the impact the war would have on crude supplies.

However, crude prices started declining immediately after the war started on March 20 but the oil companies did not revise downward the retail selling price of petrol and diesel on April 1 as the previous hikes did not cover the entire surge in crude prices.

The average procurement cost of the Indian basket of crude was $27 a barrel in the second fortnight of March which fell to less than $25 a barrel in the subsequent fortnight.

Sources said Petroleum Minister Ram Naik wanted oil companies to slash prices of petrol and diesel by at least Rs 1.50 per litre, but the oil companies resisted it saying the previous losses on selling product below the cost of crude have to be covered now.

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What do you think about the story? Read what others have to say: Number of User Comments: 13 Sub: Petrol,Diesel prices. Both Petrol and diesel are being produced at Mumbai. If imported, the port is Mumbai/JNP. Then why is the price higher than Delhi? Could any ... Posted by N G Nileshwar Sub: Decrease in Petro Prices As compared to the steep increases over the past few months,and as compared to the reductionin the International prices, the present decrease is inferior to ... Posted by Teja Sub: Petrol, diesel prices cut This is daylight robbery by the government! Oil prices have come down from about $38 per barrel before the war to about $25 per barrel ... Posted by Kalyan Sub: unjustified petrol cut by Re.1 This is unjustified cut by the petroleum ministry, If there is slight rise in crude oil price, then the petroleum ministry doesn't hestate to increase ... Posted by varma Sub: Petrol Prices down by Re.1!!!!!!!!!! It is crazy how Oil companies take people for a ride. Worldwide Crude prices have dropped by more than 20% but price cuts announced by ... Posted by Guru