India fuel retailer cuts gasoline price from Tuesday

NEW DELHI, Oct 8 (Reuters) - Indian state-fuel retailerswill marginally cut gasoline prices from Tuesday, reflecting astrengthening rupee, the country's largest fuel retailer IndianOil Corp said on Monday.

The new retail prices of gasoline in Delhi will be 67.90rupees ($1.29) a litre, about 0.8 percent lower than current68.46 rupees a litre.

The partially convertible rupee closed at 52.64/65per dollar, while Brent crude oil was trading at $111.26a barrel at 1245 GMT.

"The trends in the international oil market and Rupee-Dollarexchange rate shall be closely monitored and the same shall bereflected in future price changes," IOC said in the statement.

India's three state-run fuel retailers - IOC, BharatPetroleum Corp and Hindustan Petroleum Corp- tend to move their prices together.

India liberalised petrol prices in June 2010 but thegovernment continues to unofficially dictate prices to refiners,who suffered revenue losses of 26 billion rupees in April-Sept.

"Oil Marketing Companies have incurred a loss of 26 billionrupees approximately on sale of gasoline during April-Septemberdue to inability to change retail selling prices to the desiredextent in line with market conditions," the statement said.($1 = 52.64 Indian rupees)

(Reporting by Nidhi Verma; editing by James Jukwey)

((nidhi.verma@thomsonreuters.com)(+91 11 4178 1018)(ReutersMessaging: nidhi.verma.thomsonreuters.com@reuters.net))