Taking cues from falling global oil prices, Essar Oil -- India's largest private fuel retailer -- on Thursday cut petrol and diesel prices by an average of Rs 1.50 a litre to bring them at par with that of public sector firms.
"We have reduced fuel prices in seven western and southern states from today," a company source said.
With this, the company will sell petrol and diesel in Rajasthan, Madhya Pradesh, Maharashtra, Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Orissa at rates equivalent to those of state-run firms. Besides, its price would be equal to PSU rates in parts of Uttar Pradesh.
Essar Oil sells petrol and diesel at par with PSU rates only in Gujarat. In the remaining states, it was selling auto fuel at rates higher than those of state-run Indian Oil, Bharat Petroleum and Hindustan Petroleum.
"The international oil prices have fallen and as our pump rates are aligned to international prices, we have reduced petrol and diesel prices," the source said.
State-run oil firms sell petrol at Rs 48.76 a litre and diesel at Rs 36.70 a litre in Mumbai.
Essar sells petrol and diesel made at its 280,000 barrels per day refinery at Vadinar in Jamnagar district of Gujarat through its about 1,278 petrol pumps in the country.
The company is selling petrol and diesel between Rs 0.25 and Re 1 per litre more than the public sector rates in other states, the source said.
