Petrol price may be cut by up to Rs 1.50 per litre next week

Fuel price hikeOil subsidy had risen by Rs 20,000 crore in last two months alone on depreciating rupee that made imports costlier.

Petrol price may be cut by as much as Rs 1-1.50 per litre next week on falling international oil rates and appreciating rupee while a decision on raising diesel and LPG prices is likely in a few weeks.

While petrol price, which are revised on 1st and 16th of every month based on average imported cost in the preceding fortnight, looks set to be lowered on September 15/16, the government is mulling Rs 3-5 per litre hike in diesel and Rs 50 per cylinder hike in LPG rates to narrow record deficit.

Petrol price cut by Rs 3, steepest rate cut in 5 years

Oil Secretary Vivek Rae said the recent sharp recovery in rupee, which hit a record low of Rs 68.85 to a dollar last month, and fall in global crude prices following easing of tensions around Syria, had eased the pressure for an immediate price hike.

Put a full stop to increasing petrol prices, says Karunanidhi

He, however, said the issue of a one-time hike in diesel and cooking fuel rates "is a political and economic challenge" from which "we cannot run away."

"Some burden has to be borne by consuming population. That is the challenge government faces. It is a political challenge, it is an economic challenge. It is a challenge we cannot run away from," he said speaking at an conference organised by Delhi Productivity Council here.

No hasty decision on hiking petrol, diesel prices: P. Chidambaram

Rae said subsidy burden has reached unsustainable levels which cannot be financed by government budget and oil companies.

Oil subsidy, he said, had risen by Rs 20,000 crore in the last two months alone on depreciating rupee that made imports costlier.

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