New Delhi The sharp fall in petrol prices in Asian markets paved the way for oil marketing companies to reduce petrol prices by R2.46 per litre to R3.22 per litre to provide a much needed relief to consumers. This is the second consecutive price cut by the oil marketing companies — IOC, HPCL and BPCL — after the steepest petrol hike ever on May 24 by R7.54 per litre. The reduction, a result of fall in international oil prices, will mean that petrol in Delhi will cost R67.78 per litre, as against R70.24 at present. Petrol price in Mumbai has been cut by R3.10 to R73.35 per litre while in Kolkata it has been reduced from R75.81 to R72.74 per litre. In Chennai, the price has been cut by R3.13 per litre to R72.27 a litre. Petrol price in Asian markets (FOB Singapore) has come down below $100 per barrel on June 28, down by around 7% from last price cut date, making way for another round of relief to consumers. Companies were able to pass on nearly the full benefit of this to the consumers as there has been sharp depreciation in rupee during the period. The Indian currency has closed near the 57 per dollar on 28 June. “The accumulated losses of all the OMC’s is R2,323 crore on MS sales during the first two months due to inability of OMCs to revise MS selling prices in line with high level of international oil prices & eroded USD-INR exchange rate prevailing during that period,” the IOC statement said. On May 24, oil companies effected the steepest hike in petrol price as FOB Singapore, which is usually the benchmark for any movement in petrol price, shot up to $112.50 a barrel. Apart from the global oil prices, the depreciated rupee against the dollar, was another reason to increase the petrol prices which was making oil import expensive. This was compounded by the finance ministry's refusal to compensate companies for their losses on petrol sales. The increase then come under sharp attack from all political parties including allies like the Trinamool Congress and the DMK and there was all-round demand for a rollback. On 3rd June, oil marketing companies reduced prices by R2 per litre, as the benchmark FOB Singapore price fell to $108.35 a barrel. During this period, the global crude price had declined by 3.69%. The oil companies are still facing losses on regulated fuel products. The current under-recovery on diesel is R10.20 per litre, for kerosene is R30.53 per litre and for domestic cooking gas R396.00 per cylinder as on June 16, 2012. The total expected under-recoveries for the year 2012-13 will be around R1,51,000 crore.