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Oil below $100: good news for consumers?

After subsequent hikes in domestic fuel prices, consumers seems to be in for some good news.

business Updated: Jun 01, 2012 20:52 IST
HT Correspondent

After subsequent hikes in domestic fuel prices, consumers seems to be in for some good news.

Thanks to the fall in Brent crude oil prices, which on Friday for the first time since October 2011 fell below the crucial $100 a barrel mark, consumers can expect petrol prices to fall in the coming days. This is over and above the present cut of Rs. 2 per litre that is likely to flow to consumers anytime soon.

“If crude continues to fall and rupee stabilises then surely the consumers can expect a further cut in petrol prices,” said a senior oil company official. “A immediate cut of up to Rs 2 is underway and may be announced shortly,” the official told Hindustan Times.

Oil companies had recently increased petrol prices by Rs 6.28 a litre, which after adding taxes amounted to a hike of Rs 7.54 a litre (in Delhi) — the steepest ever hike in the country so far.

The sharp fall in Brent crude prices comes in the backdrop of less demand and rising supplies in the global oil market.