Indian Oil Co. announces reduction 60 paise in fuel prices, retracts hours later

Representational picture

Petrol and diesel prices were yesterday cut by 1 paisa per litre each, the first reduction after 16 days of relentless price hikes. But the marginal decline had its share of excitement with state-owned Indian Oil Corp (IOC) first announcing a reduction of 60 paise - the biggest since daily price revision was introduced in mid-June last year, only to retract it within a couple of hours citing a technical error.

The oil companies on Wednesday morning announced reduction in petrol price by 60 paise to R77.83 a litre and diesel by 56 paise to R68.75 in Delhi. This was rectified to 1 paisa a litre. "The reduction was supposed to be 1 paisa but due to a clerical error the price prevalent on May 25 was communicated as today's price," a senior official of Indian Oil Corp (IOC), the nation's largest fuel retailer, explained. After the 1 paisa cut, petrol in Delhi now costs Rs 78.42 per litre and diesel R69.30. Prices vary from state to state depending on local sales tax or VAT. Delhi has the cheapest price among all metros and most state capitals.