Petrol-diesel can be cheaper by 14 rupees in the country! Know 3 main reasons for falling prices

Petrol-diesel can be cheaper by 14 rupees in the country! Know 3 main reasons for falling prices | Crude oil prices in the international market were at their lowest level since January, which has now fallen to $81, so now petrol diesel prices in India may come down.

A news of relief has come out amid rising inflation in the country. According to Vogt, the price of petrol and diesel in the country may decrease by up to 14 rupees due to the fall in the price of crude oil. Crude oil prices in the international market are at their lowest level since January. It has now dropped to $81. US rough is near $74 per barrel.

Importantly, the significant drop in crude oil prices has reduced the average price of crude oil for Indian refineries to $82 per barrel. However, in March it was $112.8. According to this, the price of crude oil for refining companies has decreased by $31 (27%) in 8 months. SMC Global claims that for every $1 drop in crude, the country's oil companies save 45 paise per liter on refining.As a result, petrol and diesel will cost Rs.14 each.ought to be less than one liter.

 

So why will the price of petrol-diesel decrease?

Petroleum Minister Hardeep Singh Puri said that state-owned oil companies have started making profit on the sale of petrol, but diesel is still incurring a loss of Rs 4 per litre. Brent crude has fallen about 10% since then Companies have become profitable even on diesel in such a scenario.

According to current prices of petrol and diesel in the country, the Indian basket of crude oil should be around $85 per barrel, but it has come down to around $82. At this price, oil marketing companies charge about Rs. 245 will save.
Brent is heading towards $70 quickly, one petroleum expert said.   

Although it will take some time, this will unquestionably lower diesel and gasoline prices.30 days pass between oil import and refinery.The effect is being seen a month after the international market price cut.
Importantly, the country's oil prices have remained nearly constant for the past six months.In July, the cost of gasoline decreased by Rs 5 per liter in Maharashtra, while the cost of diesel decreased by Rs 3 per liter in other states.

Petrol-Diesel prices mainly depend on which factors?

• Rate of US Dollar against Rupee
• Crude oil price
• Fuel demand in the country
• Tax levied by Central and State Governments

How much crude oil does India import?

India imports more than 85% of its crude oil requirement. We have to pay this price in dollars. In such a situation, the rise in crude oil prices and the strength of the dollar have made petrol and diesel expensive. Crude oil comes in barrels. One barrel is 159 liters of crude oil.

 

Petrol-diesel can be cheaper by 14 rupees in the country! Know 3 main reasons for falling prices