Petrol prices may come down by Rs 4 next month

Petrol prices may be reduced by Rs 4 on the next revision date – July 1, as the crude oil prices have slipped to their lowest level since December 2010. The last revision, which was a rollback of Rs 2 after a massive hike was based on crude oil rates averaging around USD 115.77. However the rates have slipped to USD 97 per barrel. 

There is no confirmation from the companies regarding the possible cut, mainly because the rupee has devalued to Rs 57 per dollar, impacting import costs. There is also a possibility that the state-owned companies will want to recover losses that were incurred in the last six-month, due to seal on prices by the government for various reasons. The prices should have dropped fortnight ago on June 16, when the crude oil rates had already dropped considerably.

There is certainly scope for reduction in prices by Rs 4 considering current international rates. We will know exactly only on July 1, when the State-owned oil companies meet for a review. Also there is a possibility in diesel pricing policy reform in next couple of weeks after the presidential polls.