Petrol and Diesel Price to Further Go Down By Re 1

Following the steep fall in international crude price, the oil firms are now planning to cut petrol rates for the seventh time since June and third in case of diesel which was decontrolled on 18th October, 2014. According to industry experts, Bharat Petroleum Corp Ltd. and Hindustan Petroleum Corp Ltd. are planning to reduce the petrol and diesel price by Re 1 per liter by the end of this week. Recently, on October 31st, oil companies reduced petrol prices by Rs 2.41 per litre and diesel by Rs 2.25. 

The fall in crude prices already resulted in 10 to 13 per cent deduction in fuel prices from their peak prices earlier this year. The upcoming reduction in the oil prices comes from the fact that the fuel prices are reviewed and aligned with the global rates of crude oil in the middle of every month, and as the global prices are slipping down, a relief is expected from the oil firms. The Brent crude is traded at its four year low at 82 dollars a barrel. 

An industry source close to government and oil companies said, "International gasoline and diesel prices have so far dropped by $1-3 per barrel since the last price revision on Oct 31. Prices may drop further by Saturday when companies will review their retail selling price. Reductions would depend on the 15-days average rates of diesel and gasoline fortnight and the rupee-dollar exchange rate that determines the landed cost of fuel if it is imported," 

In sixth consecutive rate revision, the oil companies have reduced petrol prices by 13 per cent or Rs 9.36 per litre while the diesel price are deduced by 10 per cent or Rs 5.62 per litre in just two revision. Currently, petrol in Delhi is priced at Rs 64.24 per litre and diesel at Rs 53.35 per litre.

Source: PTI