There are chances that petrol prices in India will be reduced by state-run oil marketing companies this week. The price reduction is expected to be less than Re. 1 per liter, as appreciation of the Indian rupee against the American dollar has resulted in cheaper exports. The previous petrol reduction of 75 paise in the country was on April 1, 2014.
One of the senior executives in an oil marketing company stated that Bharat Petroleum Corporation, Indian Oil Corporation and Hindustan Petroleum Corporation are able to revise the rates of petrol in India as early as April 15, 2014. The executive – on the condition of anonymity – said, “Average rupee appreciation is about 80 paise from the last price revision. International oil prices have also marginally softened. We are waiting for latest data, which are expected on Tuesday after that we will take a call”.
Moreover, executives from the three state-owned companies revealed that the quantum of price reduction is expected to be around 60-75 paise. The estimation was based on available data of global oil prices, as well as the Indian rupee and the American dollar exchange rate. The data-keeper of the oil ministry, Petroleum Planning and Analysis Cell said that crude oil prices have been reduced to about 46 paise and the Indian rupee appreciated by 83 paise against the American dollar compared to the previous pricing cycle.
An official from the Petroleum Planning and Analysis Cell said that so far, they have data available up to April 10, 2014. However, such averages could change in different directions after data are factored in.
Photo Credits: Reuters