Brent at $97, steep petrol price cut likely | business | Hindustan Times
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Brent at $97, steep petrol price cut likely

business Updated: Sep 15, 2014 23:30 IST
HT Correspondent

After the Rs 5 a litre cut in petrol prices during August, the continuous fall in the global oil prices to a 26-month low of $96.91 per barrel is expected to result in yet another substantial cut in the prices.

Also as losses of state-owned oil companies on diesel sales have already been wiped out due to the fall in oil prices, it is expected that the oil companies will announce a simultaneous cut in diesel prices.

The cut in diesel prices — that will come after a gap of seven years — will soon end the creeping increase in your monthly diesel bills as the government may anytime soon announce the de-regulation of diesel prices on the back of declining global oil prices.

“From a little over $100 a barrel, the Indian basket of crude oil or the mix of crude that India imports for its refineries has come down to less than $96 a barrel on September 15. This along with a stable rupee against the US dollar will amount to a cut in both petrol and diesel prices,” said a senior oil company official.

While state-owned oil companies were expected to announce this cut on Monday, sources said a decision on the cut in petrol and diesel prices was deferred as petroleum minister Dharmendra Pradhan was away on a four-day trip to Vietnam. They said the cut in auto fuel prices could be announced anytime soon.

Since January 2013, diesel prices have been hiked nearly every month by 50 paise a litre. Over the last 20 months, diesel prices have been hiked 19 times for a total hike of Rs 11.81 per litre.