New Delhi, Sep 27: Oil Minister M. Veerappa Moily today hinted at a reduction in the price of petrol in the next few days, the first cut in rates in over five months.
The reduction in rates is likely to be announced by the month-end as per the practice of fortnightly revision in prices, and has been made possible due to the appreciation of rupee against the US dollar.
"This is all dynamic pricing system and not static pricing... any advantage of price (reduction in international rates) and rupee (appreciation against US dollar) will be passed on to consumers... consumer will get full advantage," he said.
Asked if a cut in petrol price was possible on September 30, he said "hope so".
"Petrol is a deregulated commodity, the price of which is decided by our oil marketing companies based on input cost and other parameters," he said.
If state-owned oil firms cut rates at month-end, it will be the first reduction in prices since May. Petrol price was last cut on May 1, by Rs. 3 per litre, the steepest reduction in rates in over five years.
However, since then petrol prices have gone up by seven times, totaling Rs. 10.80 per litre, excluding VAT, as the rupee depreciated sharply against the dollar.
The price in Delhi has surged by Rs. 13.06 per litre after including state tax, since June 1.
The last increase in petrol price was effected from September 14, when prices went up by Rs. 1.63 per litre.
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