Indian Oil Corporation (IOC) has decided to decrease the retail selling prices of Petrol by Rs 0.70/litre (excluding state levies).

On Apr. 1,  2014, prices of Petrol were reduced by Rs 0.75/litre excluding state levies resulting in Retail Selling Price at Delhi going down by Rs 0.90/litre.

This reduction was effected on the back of a declining trend in international prices of MS accompanied by a strengthening of the INR-USD exchange rate. Since last price change, while International MS prices have remained almost static, the strengthening of INR-USD exchange rate has continued. The continued appreciation of the Rupee has resulted in reduction in petrol prices warranting the proposed decrease in selling price by Rs 0.70/litre (excluding state levies) w.e.f midnight of Apr. 15/16, 2014. With this price revision, RSP at Delhi shall decrease by Rs 0.85/litre.

As regards regulated products, OMCs are currently suffering under-recovery of Rs. 5.49/litre on HSD (Retail), Rs 34.43/litre on SKO(PDS) & Rs.505.50/cyl on LPG (Dom). The projected under-recovery of the Corporation on sale of three sensitive products is estimated at around Rs 62,000 for the fiscal 2014-15 (Industry around Rs 1,200 billion).

The movement of prices in the international oil market & INR-USD exchange rate are continuously under watch and developing trends reflected in future price changes.

Shares of the company declined Rs 5.2, or 1.91%, to settle at Rs 266.85. The total volume of shares traded was 74,700 at the BSE (Tuesday).