Oil companies on Monday cut petrol price by 75 paise a litre while letting diesel rates remain unchanged.
Petrol currently costs Rs 73.16, the new price after reduction will be Rs 72.41.
“Rupee has appreciated to Rs 60.50 to a US dollar from Rs 61.44 and simultaneously international gasoline rates have dipped from USD 118.09 per barrel to USD 115.73. The twin factors will lead to a reduction in petrol price on Monday,” a source with direct knowledge of the development said.
The government, in June 2010, had given oil firms freedom to fix petrol prices on 1st and 16th of every month based on average global oil prices and foreign exchange rates in the preceding fortnight.
It had in January 2013 authorised oil firms to hike diesel prices by 40-50 paisa per litre every month till such time that the losses on the fuel are wiped out. Diesel prices have risen on 14 occasions since then.