NEW DELHI 31/10/2014: Petrol price was on Friday cut by Rs 2.41 a litre, the sixth reduction since August, and diesel by Rs 2.25 per litre on back of falling international oil rates. The reduction in rates of petrol and diesel, which was deregulated for the first time in more than a decade, will be effective from midnight tonight, Indian Oil Corp, the nation\'s largest fuel retailer, announced. The Rs 2.41 a litre price cut in petrol and Rs 2.25 in diesel was after accounting for a 10-15 paise increase in commission paid to petrol pump dealers. The reduction should have been higher by 10-15 paise if the dealer commission had not been increased. Petrol will cost Rs 64.25 a litre in Delhi from tomorrow as against Rs 66.65 currently. In Mumbai, the rate will be cut by Rs 2.55 a litre to Rs 71.91. Since August, petrol price has been cumulatively cut by Rs 9.36 per litre. Prices vary from state to state because of differential rate of local sales tax or VAT. Diesel rates have been cut for the second time this month. The nation\'s most consumed fuel will now cost Rs 53.35 per litre in Delhi from tomorrow compared to Rs 55.60 a litre at present.
In Mumbai, diesel price has been reduced by Rs 2.50 to Rs 61.04. The government had on October 18 freed diesel prices from its control, giving freedom to oil marketing companies to adjust rates in line with cost. On that day, rates were cut by Rs 3.37 per litre, the first reduction in price of diesel in over five years. The previous decline dates back to January 2009. Simultaneously, the price of non-subsidised cooking gas (LPG) was cut by Rs 18.5 to Rs 865 per 14.2-kg cylinder. Since August, this is the fourth reduction in rate of non-subsidised LPG which consumers buy after exhausting their quota of sub-market priced domestic cooking gas. Non-subsidised LPG in Delhi was priced at Rs 922.50 in July and rates have in every subsequent month been reduced. The only exception being October 23 when prices went up by a marginal Rs 3 per cylinder following government raising the commission paid to LPG dealers/distributors.V
The BJP-led government has reduced prices of petrol six times and that of diesel twice within the last three months. This shows the commitment of the Modi government towards the poor, the farmers and the common public,\" BJP national secretary Shrikant Sharma said. The reduced diesel prices, he hoped, would bring relief to farmers and also further bring down inflation. \"While the Congress government continued to raise the prices of petrol and diesel that further raised inflation rates making lives of poor miserable, the Modi government is continuously reducing the prices of these items,\" he said. The party leader said the government has taken a number of initiatives since it assumed office, including tough action against hoarders and limiting export prices of essential commodities like onion, rice and wheat. Sharma said the government is committed to bringing inflation down and helping improve the state of the economy, which was left \"in a shattered state by the previous Congress -led UPA government due to mismanagement, bad governance and corruption\".