New Delhi: The Centre may be considering its options to slash petrol and diesel prices soon, owing to a multiplicity of reasons ranging from political to purely price-based. With state Assembly polls due in Maharashtra and Haryana, the Centre may go in for petrol and diesel price cuts.
The government has conducted interministerial discussions and crude oil prices are being monitored closely, Busines today reported, citing people with knwoledge of the matter.
Global crude oil prices
Global crude oil prices have remained near the $70 per-barrel level. Brent crude prices were down 2.24 per cent to $71.06 per barrel on Saturday. A key factor driving this moderation in global crude oil prices in the return of Libyan oil to OPEC’s supplies. OPEC+ has also put on hold its decision to slash production amid expectations of a moderation in global demand during the ongoing and next year.
While geopolitical tensions persist, India has largely benefited from the imposition of an embargo on Russian Ural crude by deciding to defy a Western ban and purchase oil for cheaper from Moscow.
What oil minister said
During an interaction with CNBCTV18, oil minister Hardeep S Puri indicated that if it were up to him, petrol and diesel prices would remain low. He said this was also good for India’s energy bill since the country was dependent on imports to meet 88 per cent of its energy needs.
Recent price cuts
The Centre slashed petrol and diesel prices by Rs 2 per litre, taking the price of petrol in the national capital down to Rs 94.72 per litre and diesel prices down to Rs 87.62 per litre. To be sure, the price of the Indian fuel basket has moderated to $76 per barrel in September from $89.4 per barrel in April, the ET reported, citing a note by Motilal Oswal Financial Services.
Since oil marketing companies have more margin owing to a decline in crude pil prices, the government may press this into use ahead of the Haryana and Maharashtra Assembly polls, the TOI reported. OMCs earn margins on the difference between the price of refined products and crude oil prices, as well as from petrol pump pricing.
The Centre may reportedly proceed with a petrol and diesel price cut ahead of key Assembly polls. Th Centre had last slashed prices in March 2024. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
