If VAT is included, the reduction in price is actually Rs 1.02 per litre in the national capital. Motorists here need to only pay Rs 67.29 per litre of petrol from Tuesday as compared to Rs 68.34 till date.
The corresponding figures for Mumbai, Kolkata and Chennai are Rs 74.14 a litre, Rs 74.72 and Rs 70.34.
Explaining why the petrol price has been reduced, the Indian Oil Corporation (IOC) pointed out that international prices of the fuel have fallen from 122.74 US dollars per barrel to 119.23 US dollars a barrel in the past two weeks. The Indian rupee also appreciated by 12 paise to Rs 54.28 against the US dollar.
"Following this, it has been decided to pass on the benefit to customers and accordingly the aforesaid reduction in the retail selling price of petrol is being effected," the IOC said.
It is not just motorists who have a reason to be happy, households too can rejoice as non-subsidised cooking gas also turned cheaper by Rs 3 per cylinder on Monday.
According to IOC officials, non-subsidised LPG refill will henceforth cost Rs 901.50 in the national capital. Till Sunday, families living here had to pay Rs 904.50 for a cylinder after exhausting their quota of 9 subsidised LPG refills in a year.
In Kolkata, a non-subsidised cylinder will cost Rs 926.50 while the rates in Mumbai and Chennai will be Rs 912 and Rs 898 respectively.
Though the cap on LPG cylinders was fixed at six when the UPA government first opted for the unpopular move in Sep 2012, protests by the entire opposition and even constituents of the ruling coalition forced a rethink.
The Centre finally revised the cap upwards in Jan 2013. Now each household can avail a maximum of nine LPG cylinders in a year. On Jan 18, oil companies hiked the price of non-subsidised refills to Rs 942 in Delhi. On Mar 1, the rates were further slashed to Rs 904.50.