Petrol Prices will be decreased by Rs 2/ litre  from tomorrow.State-run oil refiners have agreed to a partial rollback of last month’s petrol price increase, an oil company source said on Saturday, responding to a public outcry over the steepest rise in the country’s history.
The change would come into effect with Midnight June 3, 2012.
Last month, state oil retailers – Indian Oil Corp (IOC.NS), Bharat Petroleum Corp (BPCL.NS), and Hindustan Petroleum Corp (BPCL.NS) – raised petrol prices by 6.28 rupees a litre, excluding taxes.
The net overhead on Petrol Prices has been reduced to Rs 4.28 Per litre.
With international gasoline rates, against which petrol is benchmarked, falling to USD 114-115 from USD 124 (that was taken into account for the steep Rs 7.54 a litre hike effected from May 24), there existed a scope for reducing prices by Rs 1.50-1.60 a litre.
Rupee depreciation raises cost of imports. Every dollar fall in oil price should translates into a cut in product price by 33 paisa. But every time rupee depreciates against US dollar by Re one, it translates into a requirement to raise prices by 77 paisa.