After 16-day surge, fuel prices cut by 1 paisa

NEW DELHI: Prices of petrol and diesel were cut by one paisa on Wednesday after the Indian Oil Corp’s (IOC) website initially showed a fall of around 50-60 paise per litre of the fuels.
IOC described the incident as a “technical glitch” and clarified that actual price cut was of one paisa a litre.
“There was a technical glitch in posting the selling prices of petrol and diesel on our website today. The selling prices of petrol and diesel w.e.f. (with effect from) May 30, 2018 have been rectified on our website,” a spokesperson with company said, adding: “Today, there is a minor reduction in fuel prices.”
This price cut of “one paisa” in petrol and diesel prices across the four metros on Wednesday, came after a daily hike for the last 16 days.
This cut in price, contrasts against nearly Rs 4 per litre rise during May 14-29, with daily hike in prices varying around 15-30 paise a litre.
In Delhi, Kolkata, Mumbai and Chennai petrol prices on Wednesday were at Rs 78.42, Rs 81.05, Rs 86.23 and Rs 81.42 per litre respectively, all prices down one paisa from Tuesday, according to the revised data on the IOC website. Prices of petrol in Delhi, Mumbai and Chennai reached record levels during last two weeks and were scaling new highs. In Kolkata, the fuel was sold near four-year high levels.
In tandem with the trend in petrol, diesel prices on Wednesday were at Rs 69.50, Rs 71.85, Rs 73.78 and Rs 73.17 per litre in Delhi, Kolkata, Mumbai and Chennai respectively, again declining by one paisa in the four cities.
However, Kerala will cut taxes on gasoline and gasoil to reduce retail fuel prices by 1 rupee/litre from June 1, Finance Minister Thomas Issac told television channel CNBC 18.
Kerala’s move could put pressure on other states, mostly ruled by Prime Minister Narendra Modi’s Bharatiya Janata Party, to reduce taxes.
Communist party-ruled Kerala is the first state in the country that has decided to take a hit on its revenue to mitigate the impact of higher global prices on customers.
Issac said his government will calibrate tax rates in such a manner that retail fuel prices will be reduced by 1 rupee/litre from June 1.
Indian state refiners on Wednesday announced a marginal cut in retail prices of the two fuels.