Rejoice: Petrol and Diesel Prices May Further Go Down in Coming Weeks

Petrol and diesel prices may further go down by Rs 5 as the international crude prices hits a new four-year low at $70 a barrel. If the price of global crude continues to fall in the same pattern, it is expected that the petrol and diesel prices can be reduced by Rs 5. Since both petrol and diesel prices have been deregulated in the country, the international crude rates controls the fuel prices in country.

“If the slide in oil prices continues, we can expect petrol prices to drop below Rs. 60 a litre from around Rs. 65 presently (in Delhi),” said the chairman of a leading oil company seeking anonymity.

Recently, OPEC (Organization of the Petroleum Exporting Countries) decided not to cut the production quantity of oil. There had been hopes that oil ministers with OPEC who met in Vienna would cut production to hold the slipping-on-ice prices. Once traded at $100 to $102 per barrel, the crude rates have fallen by 30 per cent. Prices have steadily fallen because of a strengthening U.S. dollar, lower demands and most importantly, because of excess supply of oil. Despite of an oversupply of crude and plunging prices, the officials of OPEC decided to keep the production to 30 million barrels a day.  

According to the data available, India imports about two-thirds of its crude oil requirement. Sources following the oil prices stated that the if the slide in global crude prices continues to follow, petrol prices could fall below Rs. 60 a litre in the coming weeks.

Since August, in six price cuts, petrol prices have been deduced by Rs 9.36 a litre while diesel prices have been cut by Rs. 5.62 a litre since October.