The central government had reduced the prices of petrol and diesel in March.
Petrol and diesel prices in the country may drop by Rs 2-3 per litre. Since March, crude oil prices have declined 12%, leading to higher margins for oil marketing and refining companies. In such a situation, it is possible to reduce the prices of gasoline and diesel.
According to rating agency ICRA’s report, the average price of imported crude oil in India fell to $74 per barrel this month. In March, their prices were $83-$84. The last time petrol and diesel prices were reduced by Rs 2 per liter was in March itself.
Girish Kumar Kadam, Senior Vice President, ICRA, said, “Between March and September, revenues of oil marketing companies increased by Rs 15 per liter for petrol and Rs 12 per liter for diesel . In such a situation, if crude oil prices remain stable, then the price can be reduced by Rs 2 to 3 per liter.
The most expensive gasoline in the country is found in Andhra Pradesh
Currently, the most expensive gasoline in the country is found in Andhra Pradesh. Here, a liter of petrol costs Rs 108.46 per litre. After that, it is Rs 107/litre in Kerala, Rs 106/litre in Madhya Pradesh and Rs 105/litre in Bihar. At the same time, the price of diesel in Andhra Pradesh is Rs 96/litre.
All the necessary elements are in favor of a reduction in the prices of petrol and diesel by the government.
In the 2024 Economic Survey, crude oil prices are estimated at $84 per barrel. However, after the price slowdown, rates are hovering between $70 and $75 per barrel, Ajay Kedia, advisory director of Kedia, said that the Indian government has set a target of around $85 and current prices are around 70/72 dollars. Kedia According to , a drop in crude oil prices to $75 per barrel will result in a potential saving of $15-18 billion (Rs 1.26-1.51 lakh crore) per year in the import bill. Inflation will reduce and money will be saved. for large investments. But despite the positive outlook for prices, the government is cautious about passing on benefits to consumers. The government has decided to cut retail prices of petrol and diesel amid concerns over a possible global recession and the RBI’s decision to cut interest rates. The decision remained pending.
Petrol and diesel prices mainly depend on 4 things
Price of crude oil Price of US dollar against rupee Taxes collected by central and state governments Fuel demand in the country
India imports 85% of its crude oil needs.
We purchase more than 85% of our crude oil needs externally. We must pay its price in dollars. In such a situation, due to rise in crude oil price and strengthening of dollar, petrol and diesel start getting expensive. Crude oil comes in barrels. One barrel is equivalent to 159 liters of crude oil.
How are petrol and diesel prices determined in India?
Until June 2010, the government set the price of gasoline and it was changed every 15 days. After June 26, 2010, the government left the determination of oil prices to oil companies. Similarly, till October 2014, the price of diesel was also fixed by the government.
Since October 19, 2014, the government has also entrusted this work to oil companies. Currently, oil companies determine the price of gasoline and diesel on a daily basis taking into account the price of crude oil in the international market, exchange rate, taxes, transportation cost of gasoline and diesel and much more. other things.