Expectations of Price Cuts Dwindle
It looks like the hopes for lower petrol and diesel prices are fading fast. Just last week, Brent crude oil, which sets the global price benchmark, dropped below $70 a barrel, marking the lowest point since December 2021. This had many people anticipating a potential reduction in fuel prices, but that optimism took a hit when Brent began trading around $74.58 per barrel. Despite the fluctuations in global oil prices, domestic petrol and diesel prices remain unchanged, leaving many wondering why these cuts haven’t materialized.
Uncertainty Surrounding Price Adjustments
Officials from the Petroleum Ministry have made it clear that any discussions about price cuts are off the table for now, especially with the Maharashtra Assembly elections approaching. When pressed for a timeline or any possibility of a reduction, officials have been vague, indicating that the current global market tensions are causing too much uncertainty. As long as crude oil prices remain volatile, it seems that public sector petroleum companies are hesitant to adjust their prices accordingly.
Current Fuel Prices Across India
As of now, retail fuel prices have remained stable since April 2022, with only a slight reduction just before the upcoming general elections. It’s worth noting that India imports a staggering 85% of its petroleum needs, and major retailers like Indian Oil Corporation, BPCL, and HPCL have been making solid profits without altering prices to match costs since 2021. Interestingly, the cheapest petrol in India can be found in Port Blair at Rs 82.42 per liter, while prices vary widely across the country, with some areas like Adilabad seeing petrol prices soar to Rs 109.41 per liter.
SHOTRS COVERAGE.
Expectations of Lower Prices of Petrol and Diesel Dealt a Blow, Crude Oil Near $75
The anticipated reduction in petrol and diesel prices faces setbacks as Brent crude oil nears $75 per barrel. Despite a dip below $70 last week, fluctuations in global oil prices prevent domestic price cuts. A Petroleum Ministry official indicated no changes are expected before the Maharashtra Assembly elections. Retail prices have remained stable since April 2022, with minimal reductions prior to the 2024 elections. Currently, the cheapest petrol in India is Rs 82.42 per liter in Port Blair.
