Petrol and diesel prices in India could be reduced yet again in the coming weeks since the global oil prices have slumped to a four-year low of about $70 a barrel.
If the global decline in oil prices continues, domestic oil companies have hinted that petrol prices could go down below Rs. 60 / litre. Currently petrol is priced around Rs. 65 / litre in Delhi. If the priced do drop below Rs. 60, end user will be very happy about fuel prices after a long time. Not just that, the automotive industry could also see a positive spike in sales of petrol powered cars since the difference between diesel and petrol is less now.
Since August ’14, petrol prices have come down by Rs. 9.36 in six price cuts and diesel prices have come down by Rs. 5.62 since deregulation.
Lower fuel prices will also help the government keep inflation under a check. Lower inflation could also lead to the Reserve Band cutting interest rates for home loan EMIs.
India imports almost 190 million tonnes of crude oil in a year for $145 billion. For every $ decrease in prices, the government could save up t0 Rs. 4,000 crore on oil import.
Source – HindustanTimes