Oil firms are planning to cut down the price of fuels, both petrol and diesel, following the drop of international crude oil price. It is the seventh time since June that the price of petrol witnessed a drop. For diesel, this was the third time that the prices were reduced after it was decontrolled on October 18th, 2014. The industry experts have commented that the price of petrol and diesel are expected to see a drop of 1 INR for each litre, according to the plans of Bharat Petroleum Corporation Limited as well as Hindustan Petroleum Corporation Limited. The last reduction of petrol and diesel prices were on October 31st, when the price of petrol was decreased by 2.41 INR per litre and the price of diesel was deducted by 2.25 INR.
Crude oil prices have been steadily falling this year as compared to their sky high prices in the beginning of the year. This recent reduction is aligned with the fact that the fuel prices are reviewed with global rates of crude oil in the middle of each month. Global prices are being reduced as a result the prices are expected to fall from the oil firms, as well. The Brent crude has been traded at an all-time low in four years at 82 USD a barrel. This has been the primary reason for the reduction of oil prices across the globe.
When asked to comment about the recent dip in oil prices, a source said, "International gasoline and diesel prices have so far dropped by USD 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."
If the proceedings go in the same way, there are chances that the prices of petrol and diesel might as well drop further in the days to come.
