Gaining rupee may push petrol prices lower

Business

oi-Sunil

By Sunil Fernandes

Updated: Saturday, March 29, 2014, 9:57 [IST]

The gaining rupee is likely to push petrol prices at the retail level lower. The crude oil of the Indian basket is down to Rs 6307 per barrel as on March 27, from Rs 6523 per barrel for the pricing fortnight February 27 to March 12, 2014.

A fall in the India crude basket in rupee terms helps to push prices lower at the retail by the oil marketing companies, namely HPCL, BPCL and IOC.

One reason why the crude oil of the Indian basket has fallen in rupee terms is the sharp appreciation in the rupee.

The rupee has gained from levels of 62 on Feb 27 to the current level of 59.91 against the dollar.

This has translated in gains for the India crude basket which could mean lower prices at the petrol pumps. Check rupee rates here

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