A recent fall in global crude prices is expected to bring down petrol prices in India by around Rs. 1.50 to Rs. 2 per litre —much-welcome news for owners of petrol vehicles that have been burdened with frequent hikes.
A senior oil company executive told the Hindustan Times that an announcement to this effect will be made by state-owned oil firms in a day or two.
The price of Indian basket of crude, in the last fortnight, has fallen by more than $4 a barrel. It was $108.76 a barrel on January 1, but fell to $104.46 a barrel on January 15.
“Along with the downtrend in international crude oil prices, the rupee-dollar equation has also exhibited a stable trend during the period, indicating that price of petrol could come down substantially,” said a senior oil company official.
Petrol currently costs Rs. 72.43 a litre in Delhi, Rs. 81.31 in Mumbai, Rs. 80.20 in Kolkata and Rs. 75.71 a litre in Chennai.
State-owned oil firms had hiked petrol prices by up to Rs. 1 per litre, and diesel by up to 60 paise a litre, on January 3.
Oil firms had attributed the hike to an increase in global oil prices and depreciating value of the rupee against the US dollar between December 16 to January 2.