Petrol Diesel Price May Cut Soon: Common people are expected to get a big relief in the festive season. A reduction of 2-3 rupees per liter in the prices of petrol and diesel is possible. In fact, the reduction in crude oil prices in recent weeks has improved the profitability of petroleum companies on vehicle fuel. This has given oil companies the scope to cut the prices of petrol and diesel by two to three rupees per liter. Rating agency ICRA said this on Thursday.
At the same time, according to CLSA, petrol and diesel prices may come down after October 5. This speculation comes after comments by India’s oil secretary, Pankaj Jain, suggesting a price drop last month and media reports indicating that Maharashtra state elections are expected in early November and final dates are likely to be announced by mid-October.
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“Marketing margins on retail sales of automotive fuels have improved for Indian petroleum marketing companies (OMCs) in recent weeks with the decline in crude oil prices,” ICRA said in a note. The rating agency estimates that if crude oil prices remain stable at current levels, there is scope for further reduction in retail fuel prices.
Girish Kumar Kadam, Senior Vice President and Group Head, ICRA, said, “ICRA estimates that the net realization of OMCs in September 2024 (till September 17) was higher by Rs 15 per liter for petrol and Rs 12 per liter for diesel as compared to international product prices. The retail selling prices (RSPs) of these fuels have remained unchanged since March 2024 (petrol and diesel prices were reduced by Rs 2 per liter on March 15, 2024) and it appears that if crude oil prices remain stable, there is scope for their reduction by Rs 2 to Rs 3 per liter.
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Crude oil prices have fallen sharply in the last few months, mainly due to weak global economic growth and high US production. At the same time, OPEC and allied countries (OPEC+) extended their decision to withdraw their production cuts by two months to deal with falling prices.
