Petrol price likely to be cut by Rs 4/lit on July 1

After much hue and cry, petrol price is likely to be reduced by upto Rs 4 per litre from July says a media report. The continuous fall in crude price touching almost near eight-month lows is probably the trigger.

However, in an interview to CNBC-TV18 , Sudhir Vasudeva, Chairman, ONGC had said that under recovery won't fall even though crude oil price have decreased.

He said, "Depreciation of rupee is 20% which wipes out all the gain of oil price decrease. As far as the subsidy is concerned we have been instructed only to pay that provisionally USD 56 a barrel."

The government faced severe criticism after it raised petrol price the by Rs 7.54 a litre on May 23.