Petrol diesel price may slashed cut if crude rates stay low for longer: International crude oil prices fell to a three-year low before recovering marginally, but Indian petrol and diesel prices can only come down if crude oil prices remain low, industry sources and officials said on Thursday. Global oil benchmark Brent crude oil futures prices fell below $70 a barrel on Tuesday.This happened for the first time since December 2021.But due to Hurricane Francine, the supply of crude oil in the Gulf of Mexico was affected and crude oil prices again rose.
If this continues, the prices of petrol and diesel will come down
On Thursday, Brent crude was above $71 a barrel while West Texas Intermediate rose to near $68. Officials said petrol and diesel prices would be revised if the downward trend in international crude oil prices continues. Petrol and diesel prices have remained stable for more than two years now except for the pre-election cut earlier this year.
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Petroleum Secretary Pankaj Jain told reporters at an event here that if international oil prices continue to fall, petroleum companies will take appropriate decisions about reducing fuel prices. Industry sources said that all three public sector fuel retailers are making good profits on petrol and diesel, but before deciding to cut prices, they want to ensure the trend of improvement in prices.
Prices may become cheaper before Maharashtra electionsPetrol-Diesel
An official said, “Petroleum marketing companies do not want a situation where they cut prices and the international prices increase.”Brokerage firm MK Global Financial Services has expressed hope that Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) will cut petrol and diesel prices before the assembly elections in Maharashtra.
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MK Global said, “The model code of conduct is in force for a month in Jammu and Kashmir and Haryana. In such a situation, we expect a reduction around Diwali and before the model code of conduct for Maharashtra elections. There may be a reduction of Rs 2 per liter on petrol and diesel.”
India imports 85 per cent of its petroleum needs and its fuel pricing is based on international rates. Petroleum marketing companies have not revised prices in line with costs since the end of 2021 despite having pricing freedom. They cut prices by Rs 2 per litre just before the general elections and then froze the rates. In the national capital, petrol costs Rs 94.72 per litre while diesel costs Rs 87.62 per litre.
