IOC to cut diesel prices by 3.7 pct from Monday

Diesel will cost Rs.52.27 per litre, down from its previous price of Rs.54.28.

Fuel subsidies for 2015 were estimated to be OMR580 million, and with deregulation the government will be able to save that money, which is expected to be a great help in reducing the deficit.

Fuel retailers in the country change the prices of petrol and diesel every fortnight keeping in mind global oil prices and the changes in the exchange of the Rupee and the Dollar. Similarly, diesel will cost Rs 52.27 per litre as against Rs 54.28 now.

July has been a good economical month for automobile users. Diesel rate on that date was reduced by Re0.42 per litre. Petrol prices in the four hikes had been raised by Rs 4.52 a litre and diesel by Rs 7.72 per litre.

Parliament was informed earlier this week that nine excise duty hikes over a span of few months have helped the government nearly triple its excise earnings from petrol and diesel to about Rs 70,000 crore during 2015-16.

After discounting the 16 April reduction, petrol prices have jumped by Rs.9.04 per litre since mid-March and diesel by Rs.11.05 per litre.