Petrol price cut by 68p

State-run fuel retailers have reduced the fuel's price by approximately 54 paise a litre, excluding state taxes. This marks the fourth such cut since April 1. The decrease in the Mumbai price is 68 paise and petrol will now cost Rs 75.73 a litre in the city.
However, the wait for a much-anticipated reduction in diesel price -the first in four years -got longer due to the poll code and lack of clarity on whether it requires Cabinet approval. The poll code did not apply to petrol as its pricing has been deregulated since January 2013 and has been revised every fortnight in tune with international prices as well as the rupee's exchange rate. Announcing the reduction, market leader IOC said the move followed a continued downward trend in global petrol prices. But the news came with a cautionary note over a depreciating trend in the rupee exchange rate.
Diesel price has been revised upward by about 50 paise per litre every month since January 2013. This followed a Cabinet decision to raise prices in “small doses“ every month till the gap between the governmentcapped retail price and production cost -called underrecovery -was wiped out.
These marginal price increases, together with declining global prices and improved rupee exchange rate, managed to completely wipe out the subsidy element and showed an “over-recovery“ of 35 paise a litre since September 16. The margin is believed to have risen further in the subsequent fortnight.
Naturally , there was widespread anticipation of a price cut at the fuel's monthly review on Tuesday . However, the poll code in effect in Maharashtra and Haryana came in the way . The oil ministry is believed to have referred the issue to the EC.

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