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Indian Finance Minister arun Jaitley (Courtesy: www.arunjaitley.com)

Further Cut in Petrol, Diesel Prices Likely as Saudi Arabia Reduces Brent Sold to US

Nearly $2 cut in international crude rate on Tuesday may prompt the Indian oil companies to heed the market voice and reduce petrol and diesel prices further from the last week’s Rs.2 cut. The statement is expected anytime tomorrow.

Recently, the oil rates are witnessing multiple reductions, especially in petrol rates and the deregulation of diesel prices last month too may lead to widen the corporate margins and retail consumers can look forward to more price cuts.

The Brent crude oil on Tuesday fell to its lowest in four years at $82 a barrel after Saudi Arabia cut sale prices to the US. The basket of 12 crude oils of the Organisation of Petroleum Exporting Countries (OPEC), which include Saudi Arabia, closed at $80.64 a barrel Monday compared to $81.97 last Friday, the OPEC Secretariat said.

It was reported that OPEC members Venezuela and Ecuador are working on a joint proposal to defend oil prices, but the United Arab Emirates oil minister said the country is “not panicking”.

Announcing the diesel price deregulation last month, Finance Minister Arun Jaitley had said: “Price of diesel will be linked to the market, and therefore, depending on whatever is the cost involved, is the element that consumers will have to pay.”

“Just like petrol prices, diesel cost will now be governed by market forces. The diesel prices were being increased by 50 paise or so over the last few months. The prices should come down as the global crude oil prices have dropped substantially in recent times,” he had added.

Petrol and diesel prices were last cut on Saturday by over Rs.2 per litre each.

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