New Delhi: With the economy in doldrums there finally seems some good news for the common man already burdened by the rising inflation, as oil marketing companies are likely to reduce petrol prices by Rs 4 a litre from July 1.

It looks like the Indian oil marketing companies have buckled under pressure as the steep fall in global prices of crude oil on which the companies base the domestic prices every fortnight has forced them to rethink the hike in petrol prices.
If the petrol prices are slashed it will provide a big relief to the common man.

Recently, there was huge uproar and protest across the country after petrol prices were increased by Rs 7.54 a litre on May 23 – the highest so far.

But senior officials in the oil companies said the price cut would come only if the global petrol prices and the rupee-dollar exchange rates hold for the rest of this month.

With each dollar decline in global prices, the domestic price declines by around Rs 0.34 a litre, while every rupee fall against the dollar leads to a price rise of 75-to-80 paise a litre.

The average global petrol price has come down to $99 a barrel from $115 at the time of the last price cut of Rs 2.02 on June 2.


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