After announcing the steepest ever hike in gasoline/petrol prices ten days ago, India's state-owned oil marketing companies have agreed on a partial rollback.
Prices will be reduced by 2.02 rupees per litre including state levies in the capital Delhi, the Indian Oil Corporation said in a statement. The decrease in other states will vary depending on the value added tax/state tax, the company said.
The reduction was attributed to lower crude oil prices globally. The cut is effective June 2 midnight/June 3.
Gasoline prices were hiked by as much as 11 percent or 6.28 rupees per litre excluding taxes on May 23, the same day the Indian currency breached the crucial 56-mark against the U.S. dollar to reach a new low.
It was the biggest ever hike and took analysts by surprise as a 5 rupees increase was widely expected. India deregulated gasoline prices since June 2010. The previous revision was in December 2011.
The increase created an uproar across the country already reeling under the pressure of high inflation. Some partners of the ruling coalition UPA and opposition parties have been calling for a rollback. A strike held on May 31 brought life to a standstill in most parts of the country.
The Indian government has deferred hiking diesel and cooking gas prices, which are still under its control. The country's economy grew a less-than-expected 5.3 percent annually in the first quarter, the weakest pace in nine years, mainly due to the weak performance in manufacturing.
by RTT Staff Writer
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