Crude Oil The fall in crude oil prices in recent weeks has improved the profits of petroleum companies. This has given public sector oil companies the scope to cut petrol and diesel prices by 2 to 3 rupees per liter. Rating agency ICRA gave this information on Thursday. The price of crude oil imported by India averaged $ 74 per barrel in September, which was $ 83-84 per barrel in March.
The last time the price of petrol and diesel was reduced was by Rs 2
Petrol and diesel prices were last cut by Rs 2 per litre. ICRA said in a 'note' that with the fall in crude oil prices, marketing profits on retail sales of motor vehicle fuels for Indian petroleum marketing companies (OMCs) have improved in recent weeks. The rating agency estimates that if crude oil prices remain stable at current levels, there is scope for further reduction in retail prices of petrol and diesel.
RSP of fuel remains the same since March 2024
Girish Kumar Kadam, Senior Vice President and Group Head, ICRA, said, “ICRA estimates that the net realisation of OMCs in September 2024 (up to September 17) was higher by Rs 15 per litre for petrol and Rs 12 per litre for diesel as compared to international product prices. The retail selling prices (RSPs) of these fuels have remained unchanged since March 2024 (petrol and diesel prices were reduced by Rs 2 per litre on March 15, 2024) and it appears that there is scope for them to be reduced by Rs 2 to Rs 3 per litre if crude oil prices remain stable.”
Crude oil prices falling due to weak global economic growth
Crude oil prices have fallen sharply in the last few months, mainly due to weak global economic growth and high US production. At the same time, OPEC and allied countries (OPEC+) extended their decision to roll back their production cuts by two months to deal with falling prices.
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