For last two months in view of the international oil landscape and recovering rupee-dollar rate, auto fuel rates have been going down. As per the IOC website, ahead of the state assembly outcome in 5 states, petrol and diesel prices have again come down for the sixth consecutive day. Petrol prices have scaled lower to levels of Rs. 70.31/ litre from record highs of Rs. 81.5 / litre.
In India, the pricing of petrol and diesel is deregulated and it is the oil marketing companies who basis the market factors now come up with fuel rates on a daily basis at 6 am.
But as internationally crude prices have come down by almost one-third since October due to global financial markets downtrend and concerns around oversupply, OPEC decided to intervene and lift up the price of benchmark crude oil.
In the previous week on Friday, the OPEC decided to cut crude oil supply by 1.2 million barrels per day (bpd) beginning January. And hence with supply cut, the price of crude oil as per analysts call is most likely to scale back to levels of 70/$ , if not 85/$ in the near future.
And thus following suit, petrol and diesel prices will again gain ground in India but not progress to record high levels as few months back which pushed the government to bring in some relief for the masses by asking OMCs to absorb Rs. 1/litre as well as has cut excise duty by Rs. 1.5 per litre on both diesel and petrol. Notably at this time, crude oil was priced at around $85 level.