Petrol, diesel prices finally cut after 16-day surge. By 1 paisa

Petrol and diesel prices were lowered today, marking the first such reduction in the last 17 days. The price reduction, which was surrounded in confusion initially, was marginal at best. Prices of both petrol and diesel were cut just by a paisa across the country. The new petrol prices, at Indian Oil Corporation bunks in metro cities are: Rs 77.42 (Delhi), Rs 81.05 (Kolkata), Rs 86.23 (Mumbai) and Rs 81.42 (Chennai). Prices at bunks operated by other oil companies may differ by a few paise. Diesel prices on the other hand are: Rs 69.30 (Delhi), Rs 71.85 (Kolkata), Rs 73.78 (Mumbai) and Rs 73.17 (Chennai). There was major confusion earlier in the day with the first reports on today's price cut saying that petrol was 59 paise cheaper and diesel 56 paise. An earlier version of this report too carried prices reflecting that. However, it later emerged that an error on the Indian Oil Corporation's website had led to incorrect prices of petrol and diesel getting reported. The IOC website revised prices on its website within hours, with the new rates showing an effective cut of just one paisa in both petrol and diesel prices. The Indian Oil Corporation attributed the confusion over the prices to a technical glitch. "There was a technical glitch in posting the selling prices of petrol and diesel on our website today... Today, there is a minor reduction in fuel prices," the corporation said in a statement. Today's cut in fuel prices came after 16 days of consecutive upward revisions. Over the 16-day period, petrol prices rose by almost Rs 4 across the country while diesel rates went up by around Rs 3.3. MYSTERIOUS FREEZE The 16 days of hike came after a mysterious 'freeze' in the daily revisions of fuel prices across the country. Oil corporations stopped their usual practice of revising fuel prices daily on April 24 and only resumed it on May 14. The companies offered no explanations for where fuel prices remained unchanged between April 24 and May 14. However, many linked the unofficial freeze to the Karnataka election. Voting in Karnataka was held on May 12 -- just two days after, on May 14, oil companies reverted to the practice of daily revisions in fuel prices. Prices had been going up since then and the Centre faced a lot of flak for allowing fuel to get more expensive by the day. The government, for its part, has said that a group of ministers is working on a 'long-term' solution to keep fuel prices in check and has also suggested that efforts are on to bring petrol and diesel under the Goods and Services Tax regime. Currently, both state and central governments impose different taxes on fuel. Source: India Today