The domestic car owners can heave a sigh of relief as the Indian government has slashed the prices of petrol fuel by Rs. 2 with effect from March 16, 2013. The latest price cut decision is received as a welcome move by both owners and auto makers of the country. The Rs. 2 price cut on petrol is the highest of last nine months, but is not inclusive of local taxes and Value Added Tax (VAT). As per reports, the reduction in international crude oil rates has led to the price cut of petrol fuel in the country. The international crude oil rate fell from $ 112.73 to $ 107.41, which is also one of the biggest falls lately. Evidently, the petrol price was last increased by Rs. 1.40 per litre on March 2, 2013, which was the second increase in fifteen days as the rates were hiked by Rs. 1.50 per litre on February 16, 2013.
Interestingly, the Indian government has offered no respite to the worries of domestic owners of diesel powered vehicles. There has been no reduction in the prices of diesel fuel, which had been partially de-regulated in 2012. The diesel fuel is significantly cheaper than petrol, owing to the subsidies on it offered by the government. However, the diesel prices are expected to rise gradually by few paisa per month for the upcoming 10 months, in order to facilitate the reduction in subsidy margin on the Indian oil marketing companies.
The oil marketing companies were anticipated to begin with their plans of monthly price hike of 40 to 50 paisa a litre of diesel, which has not been implemented.