NEW DELHI: Diesel prices were reduced by Rs 2.50 per liter and petrol by Rs 1 per liter as global oil prices fell to their lowest level in 27 months.

Prices are likely to come down after the October 15 assembly elections in Maharashtra and Haryana, according to sources close to the matter.

Benchmark Brent crude oil today fell 1.355 per barrel to $ 90.76 USD, the lowest level since June 2012 this month. Prices are down 18% this year.

According to 9, because of the price cuts Calculated on the basis of the average price for the second half of the month, the profit on the sale of diesel will start from $ 1.90 per liter Rupees to expand.

Although the difference between under-recovery of retail sales or retail sales and over-recovery, taking into account sales prices and import costs, was September 16 canceled to Rs. 1.90, the government did not reduce the interest rate because of the election rules.

On the other hand, petrol was de-controlled on a monthly basis in June 2010 and then the rates were changed every two weeks depending on the cost. The last gasoline price reduction was 10%. January 1, in line with international trends.

Gasoline prices are adjusted according to the October 15 due date based on price adjustments on the 1st and 16th, sources said. The monthly prices are based on the average international prices of the last two weeks.

It is not clear whether the diesel price review will take place on the same day. The price of the required diesel is also calculated on a fortnightly formula, but the product remains under government control.

Sources said that despite the Cabinet Committee on Political Affairs (CCPA) allowing a 40-50 paisa per month hike in diesel prices on January 17, 2013, in order to address the recovery gap, the petroleum ministry feels it did not anticipate the situation. Excessive recovery.

Controls or liberalization have not been relaxed despite the increase in diesel prices.

Weak international oil prices mean that diesel has not recovered enough or the difference between retail and import prices is disappearing. Since September 16, 35 paisa per liter has been over-recovered. The over-recovery rate for October 1 rose to 1.90 per liter The rupee is expected to rise further to Rs 2.50.

The oil industry wants to reduce diesel rates to protect its market share or else lose out to private retailers who price at international rates.