Petrol prices to be cut by Re 1 from Nov 15

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New Delhi, Nov 12: In an all time record in the price cut of petrol, state oil firms decide to give a subsidy to their consumers for the seventh time by cutting down prices by Re 1. This is reportedly the seventh cut since June.

In comparison to last year, consumers are already getting 10-13% cheaper petrol this year. As per Economic Times, the Indian Oil Corp, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd are implementing the revised rates.

Fuel prices are reviewed according to global trends in the beginning and the middle of every month. Thus, price cut could be steeper depending on the sliding market prices of auto fuels. Benchmark Brent crude dropped four years low at around $82 per barrel on Tuesday.

An industry source said,"International gasoline and diesel prices have so far dropped by $1-3 per barrel since the last price revision on Oct 31. Prices may drop further by Saturday, when companies will review their retail selling price. Reductions would depend on the 15-days average rates of diesel and gasoline fortnight and the rupee-dollar exchange rate that determines the landed cost of fuel if it is imported."

Some companies are also expected to marginally reduce revenue losses on cooking gas, where they are losing about Rs 394 per 14.2 kg cylinder. 

However, experts believe that the government will not pass the entire benefit to consumers for political reasons, considering the volatile international oil market, which requires a cushion to absorb pricing shock if rates move north, especially during month-long assembly elections, sources said. 

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