News Tonight

Call it a fall in global oil rates or an announcement ahead of elections, petrol prices have been sliced down by Rs 2 in India. The revised prices would be effective from November 16.

For a change, India residents would see a reverse in the trend as from January 2009, they have witnessed only upsurge in the petrol price and it is after two year that they would witness decline.

Recently on November 3, petrol prices were again increased by Rs 1.80 per litre, by giving an explanation that prices have increased in global market. One of the senior executives at the state-owned firm affirmed, "Since petrol is a deregulated commodity which moves in tandem with international rates, we intend passing on the reduction to the consumers”.

Giving further explanation for the reduction, he was of the view that in October, petrol was available at USD 121.67 per barrel, but in first half of November, it is available for USD 115.85 per barrel. Difference lies in the amount, said he.

Not only difference in price has lead to reduction, but increased value of rupee against the US dollar has helped a lot. Current price is Rs 49.20 per US dollar and in October price was Rs 49.40 per US dollar in exchange.

The cut that has come after 33 months would surely bring some relief to people, who already have been grappled by inflation. Talking about the reduced amount, the officer was of the view that Rs 1.86 per litre with tax would be evaded, which forms to be Rs 2.

Ruling party would not to have face the political anger at this year Parliament's winter session. The government has passed on the message to oil companies to decline prices for crude oil as well.

This step would help the government to strengthen its relation with people as earlier they were criticized for lack of transparency in the pricing mechanism.