The Indian owners of petrol run vehicles can have some respite as the government may soon cut the petrol price by more than a rupee. Recently, the increase in valuation of INR has shown some promise towards the cutback, while the international crude oil price has also taken a little beating.
The unanticipated resurgence in the value of Indian Rupee against the American Dollar, will certainly help the government in countering its expenditure dedicated towards imports. The public sector oil companies are affirmative that the surge in INR could result in some price cut in fuel prices, besides the falling international crude oil rates will definitely come handy in providing more margins in imports.
Reportedly, some top oil industry official has confirmed that if the price of crude oil in the international market and the value of Indian Rupee stay stable for a definite period, then the government could effectuate the cutback in diesel and petrol prices. However, the top official declined to divulge any details about when the decision might come.
It appears as if the government and the public sector oil companies, such as ONGC and OIL are playing a waiting game. Accordingly, the decision makers from both the sides will study the market for a definite period and if some promise comes up regarding the stability of Indian Rupee and crude oil rates, domestic consumers might see a surprise dip in diesel and petrol prices.
Interestingly, the Indian government increased the price of LPG by Rs. 11.42 on every cylinder on October 6, 2012. Such hike is usually followed by a jump in diesel and petrol prices as well in the country and thus, the confusion regarding future fuel rates just piled on. So those pre empting to get their tanks filled before the hike could as well go ahead, because the drop in fuel rates might just be another fictional story, specifically for the Indian market.
