Fuel retailers have pared the petrol prices by Rs 2 effective starting Saturday, after the international prices slashed. The benefits of the price slash have been forwarded to the public, unlike before, in terms of petrol. However, the government still had to take a beating since diesel prices were unaltered.

This is the biggest cut the petrol prices received in recent times. It is to be included that this price reduction is exclusive of taxes, meaning that each state will have its own extra benefits from the newest price cut. Rs 2.40 per liter is the new reduction in the petrol prices in Delhi, inclusive of VAT.

Indian Oil Corporation, the nations biggest fuel retailer has mentioned the price cut yesterday. Hindustan Petroleum and Bharat Petroleum would both follow suit soon but with a small difference to avoid competition by private retailers such as Reliance and Essar.

On the directives of the government, state retailers didn't reduce diesel prices to ensure that they slowly would be ramped up to the price of the markets. Diesel prices were not hiked too, upon the Oil Ministry's directives since, with an ongoing session in Parliament, any hike would clearly affect daily lives. On March 2, Opposition parties had protested and caused the disruption of a complete day's session after diesel prices were hiked.

Since February, petrol was increased by Rs 2.90 until now in two rounds (Rs 1.50 a litre on February 16 and then by Rs 1.40 per litre from March 2) excluding VAT.

(AW- Anil)