Petrol and diesel prices in the country could decrease by 2-3 rupees per liter. Since March, global crude oil prices have dropped by 12%, leading to increased margins for oil marketing and refining companies. This situation creates an opportunity for lowering petrol and diesel prices.
A report from the rating agency ICRA indicates that the average price of crude oil imported to India has decreased to 74 dollars per barrel this month, compared to 83-84 dollars in March. The last reduction in petrol and diesel prices was also 2 rupees per liter, which occurred in March.
ICRA Senior Vice President Girish Kumar Kadam said, ‘Between March-September, the earnings of oil marketing companies have increased by 15 rupees on petrol and 12 rupees per liter on diesel. In such a situation, if the prices of crude oil remain stable, then the prices can be reduced by 2-3 rupees per liter.’
The most expensive petrol in the country is in Andhra Pradesh. Here a liter of petrol is Rs 108.46 per liter. After this, it is Rs 107 per liter in Kerala, Rs 106 per liter in Madhya Pradesh and Rs 105 per liter in Bihar. Whereas, the price of diesel in Andhra Pradesh is Rs 96 per liter.
India buys more than 85% of its crude oil requirement from abroad. We have to pay its price in dollars. In such a situation, due to increase in the price of crude oil and strengthening of dollar, petrol and diesel start becoming expensive. Crude oil comes in barrels. One barrel means 159 liters of crude oil.
Till June 2010, the government used to determine the price of petrol and it was changed every 15 days. After 26 June 2010, the government left the determination of petrol prices to the oil companies.
Similarly, till October 2014, the price of diesel was also determined by the government. From 19 October 2014, the government handed over this work to the oil companies. Currently, oil companies determine the price of petrol and diesel daily keeping in mind the price of crude oil in the international market, exchange rate, tax, transportation cost of petrol and diesel and many other things.
