Petrol Cheaper By More Than Rs 2/Litre From Independence Day

State-run fuel companies have announced to reduce petrol price from Independence Day. This comes within hours of Oil Minister Dharmendra Pradhan's tweet.

"Price of petrol will be reduced from midnight of 14/15 August 2014 in the range of Rs 1.89-2.38 (Rs 2.18/litre in Delhi)," Pradhan tweeted around 4pm yesterday. Two-and-a-half-hours later, Indian Oil Corporation announced the reduction.

After the decontrolling of petrol prices in June 2010, state-run fuel retailers have been revising prices on the first and 16th day of every month in accordance with the average international rates of crude and dollar exchange rate. The average is calculated on the basis of rates in the preceding 15 days.

As per this system, the companies were supposed to announce the reduction on August 15 and it would have taken effect August 16. Now, it will come into effect from August 15.

"The minister's tweet pre-empted the oil companies from holding the current price line and book profit for a day at the cost of consumers," a senior oil ministry official said.