"Gasoline (petrol) prices have come down from USD 125 per barrel to USD 115 per barrel. But this has to sustain together with rupee stabalising against the US dollar," IOC Chairman R S Butola told PTI here. IOC and other state-owned fuel retailers revise price of petrol based on the average international rate in a fortnight. The Rs 1.80 a litre hike in petrol price announced last week was based on the average oil price in the second fortnight of October.
"I cannot say today if the prices will be reduced. We will take a call on November 15/16. It is still some days away. While it is true that gasoline rates came down to USD 113 this week, it has today gone up to USD 115.70 per barrel. We cannot predict how they will move during the next few days," he said.
While the fall in oil prices gave some comfort, rupee has dipped by 25 paisa against the US dollar. "Every one rupee dip against the dollar adds up to Rs 0.90 per litre to the retail price. So, it is very essential that rupee should not depreciate. Also, oil prices should reduce for us to consider a reduction in petrol prices," he said.
Butola said rupee depreciation from Rs 46.29 to a US dollar at the time of the previous price hike in September to Rs 49.40 had necessitated a Rs 2.49 a litre increase in petrol price but the hike was moderated by a drop in gasoline prices from USD 125.18 per barrel to USD 121.67.