Due to the fall in the price of crude oil, the prices of petrol and diesel in the country may come down by up to Rs 14. Crude oil (Brent) prices in the international market are at a low level since January. It has now come down to $81. US crude is close to $74 per barrel.
Petrol and diesel prices may come down for the first time since May
In particular, the significant drop in crude oil prices has brought down the average crude oil price (Indian basket) for Indian refineries to $82 per barrel. It was $112.8 in March. According to this, in 8 months, the price of crude oil for the refining companies has decreased by $ 31 (27%).
According to SMC Global, the country's oil companies save 45 paise per liter on refining for every $ 1 fall in crude. Accordingly, the price of petrol-diesel will be Rs.14. Should be less than per liter. However, according to experts, the entire reduction will not happen in one go.
Know the 3 reasons for the reduction in the prices of petrol and diesel
1. Saving Rs 245 per barrel to oil companies
According to the 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 to around $82. At this price, oil marketing companies will save about Rs 245 on refining per barrel (159 liters).
2. Losses to oil companies are over now
Petroleum Minister Hardeep Singh Puri had said that government oil companies have started making profits on the sale of petrol, but diesel is still incurring a loss of Rs 4 per liter. Brent crude has become cheaper by about 10% since then. In such a situation, companies have become profitable even on diesel.
3. Crude oil rising toward $70, will get relief
Petroleum expert Narendra Taneja said that Brent is rapidly moving towards $ 70. This will reduce the prices of petrol and diesel, but it will take some time. The cycle from oil import to refining is 30 days. The effect is visible after one month of reduction in the price in the international market.
Today's price of petrol and diesel
Oil prices in the country have remained almost stable for the last 6 months. Although petrol was cheaper by Rs 5 per liter in Maharashtra and diesel by Rs 3 per liter in July, in other states the prices remained the same.
Petrol and diesel prices mainly depend on 4 factors
crude oil price
us dollar rate against the rupee
Taxes collected by the central and state governments
Fuel demand in the country
India imports 85% of its crude oil requirement.
We buy more than 85% of our crude oil requirement from outside. We have to pay the price for this in dollars. In such a situation, due to the increase in the price of crude oil and the strengthening of the dollar, petrol and diesel become expensive. Crude oil comes in barrels. One barrel means 159 liters of crude oil.
How are the prices of petrol and diesel decided in India?
Till June 2010, the government fixed the price of petrol and it was changed every 15 days. After June 26, 2010, the government left the determination of petrol prices to the oil companies. Similarly, till October 2014, the government used to fix the price of diesel.
From October 19, 2014, the government handed over this work to the oil companies. At present, oil companies fix the price of petrol and diesel daily keeping in mind the price of crude oil in the international market, exchange rate, taxes, transportation cost of petrol and diesel, and many other things.
OMG 2 Box Office Weekend Collection: August 11 saw the biggest clash of the year at the box offic
Bigg Boss 18: Did Vivian Dsena flop in Bigg Boss 18? Housemates gave him the tag of 'least favorite'
Just a day after the grand premiere of Salman Khan's show 'Bigg Boss 18', the viewers of the show
The Indian team will take on Vanuatu in the four-nation Intercontinental Cup football on Monday b
Jailer Box Office Collection: Superstar Rajinikanth of South Cinema continues to be famous all ov
These days, only 'Animal' is being seen in full swing. From word of mouth to box office figures,
In the year 2006, when human skeletons started emerging from a drain in Nithari, Noida, Uttar Pra
The winners of the National Film Awards for the year 2023 were announced on August 1st. The winne
The political atmosphere in Maharashtra is heated over Aurangzeb's grave. One faction is demandin
The ICC T20 World Cup 2024 has started. So far 10 matches have been played. The Indian team has s
A shooting occurred just a short distance from the residence of President Donald Trump, the world
