The cost of crude oil for the month of May, 2012 was $105.57 per barrel. And now the Indian consumer market breathes a sigh of relief as crude oil prices dip down to $95.75 creating a possible scenario of petrol price reduction by as much as Rs. 2-3. Considering the recent hike in petrol followed by a minimal amount of reduction, this move would be welcomed by the automotive industry and common man alike. A meeting of state-owned oil firms; namely Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Indian Oil Corporation will converge on today to discuss possible reductions on petrol prices.
If the meeting were to come to a decision on the amount to be reduced on oil prices, then this may be followed by the second successive cut in petrol prices. It may however be too soon to breathe a sigh of relief as the government may be considering hiking the price diesel fuel by as much as Rs. 3 to a litre. This is due to the rising gap between petrol and diesel prices in India. Diesel is currently 74 per cent cheaper than petrol.