look news india
Petrol, diesel prices: The festive season has started in India and people may get relief before that. Rating agency ICRA said on Thursday that the fall in crude oil prices in the last few months has improved the profitability of petroleum companies on vehicle fuel. This may reduce the prices of petrol and diesel by two to three rupees per liter for public sector companies.
According to the agency, the price of crude oil imported by India in September was estimated at US $ 74 per barrel, while in March it was US $ 83-84 per barrel. Petrol and diesel prices were last cut by Rs 2 per liter. In a press note, ICRA said that along with the fall in crude oil prices, the profit on sales of automotive fuel for Indian petroleum distribution companies (OMCs) has improved in the current week.
Rating agencies estimate that retail fuel prices are likely to fall if crude oil prices remain at current levels. “ICRA estimates that the purity target of OMCs will be Rs 15 per litre for petrol and Rs 12 per litre for diesel in September 2024 compared to international production prices,” said Girish Kumar Kadam, senior vice-president and group president, ICRA (17).
The retail selling price of this fuel has remained unchanged since March 2024. (Petrol and diesel prices were cut by Rs 2 per litre on March 15, 2024) and it seems that a reduction of Rs 2 to Rs 3 per litre is likely if crude oil prices remain stable.
Crude oil prices have seen a massive drop in the past few months. The main reason for this is weak global economic growth and high US production. Therefore OPEC and its allies have pushed back their decision to roll back their production cuts by two months to counter the falling prices.