New Delhi - November 12 2014: Petrol and diesel prices are likely to be cut by close to Re 1 per litre this weekend on sliding global oil rates. This would be the seventh reduction in petrol prices since August and the third in rates of diesel since its decontrol in October. State-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) following the fortnightly review practice, are due to revise rates of petrol and diesel on Saturday.
In all probability, rates will be reduced if the current trend of declining international oil prices continue, industry sources said. Petrol price was last cut by Rs 2.41 a litre on November 1.On the same day, diesel rates were reduced by Rs 2.25 per litre. A litre of petrol in Delhi today costs Rs 64.25 a litre. Since August, petrol price has been cumulatively cut by Rs 9.36 per litre. Diesel price was for the first time in more than five years cut on October 19 by Rs 3.37 a litre when the Government decided to deregulate the fuel. This was followed by another cut on November 1 and diesel currently costs Rs 53.35 a litre in Delhi.
Prior to the October 19 reduction, diesel rates were previously cut in January 2009.Sources said oil firms revise rates of petrol, which was deregulated in June 2010, and diesel on 1st and 16th of every month based on average international oil price and rupee-US dollar exchange rate. Brent crude fell for a third day amid signs that OPEC members are reluctant to reduce supply even as prices slumped deeper into a bear market. It declined by 82 cents to $80.85 per barrel. Brent has lost almost 30 per cent since its June peak amid speculation that global supply is outpacing demand.