RIL slashes diesel, petrol prices

Mumbai, Oct 12: Reliance Industries Ltd(RIL) today announced a reduction in its retail petrol and diesel prices for the second time in October and will sell fuel at the same price as its state-run rivals.

Announcing this, a RIL spokesman said,''We have cut prices because of softer crude oil prices.'' RIL, which operates the country's biggest refinery at Jamnagar in Gujarat, ascribed the slash in fuel prices to lower crude oil prices.

Before October, it was selling retail fuel about 5 percent above state owned firms, which sell petrol at the Govt-administered prices of Rs 47.50 per litre in New Delhi. As a result, the Company had to see its market share decline markedly to less than 2 percent from 16 percent in January.

RIL dealers have been demanding that the company sells fuel at the same price as state-run firms to curb falling sales. The government compensates state-run fuel companies -- such as Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation -- for selling fuel at artificially low prices by issuing oil bonds but does not give such benefits to private retailers like Reliance.

Reliance cuts its prices as crude oil, which soared to a peak of .40 a barrel in mid-July, was trading below on Thursday.

UNI