Latest Car News in India

Thursday, October 30, 2014

By Jitendra Singh

Prices of petrol and diesel might come down before J&K assembly elections

Diesel and petrol are likely to be cheaper by about Rs 2.50 a litre soon, which would dampen inflation as diesel rates would be down 11% in less than two weeks, and cheer consumers ahead of assembly elections in Jharkhand and Jammu & Kashmir, government and industry sources said. This will be the sixth consecutive reduction in petrol prices since August and the first cut in diesel rates after the government deregulated the fuel. The Cabinet on October 18 allowed state oil firms to align pump prices of diesel with market rates and announced Rs 3.37 per litre price cut. Petrol price was deregulated by the previous UPA government in June.
 
The planned reduction in auto fuel rates in the next few days would bring down petrol prices to a 16-month low and diesel prices to a level where it existed a year ago. The steep price cut is because of a sharp fall in international oil prices. Brent crude dropped to a four-year low of $82.60 per barrels two weeks ago from above $115 in June. It was trading at $87 per barrel on Wednesday. 
 
According to international oil price data, companies are having margins of about $7-8 per barrel on petrol and diesel in the current pricing cycle compared to previous fortnight and the rupee-dollar exchange rate variation minimal, sources said. "But, a definite figure would be known only by the weekend after we get figures for remaining three days. This could change the average and pump price. According to international oil price data, companies are having margins of about $7-8 per barrel on petrol and diesel in the current pricing cycle compared to previous fortnight and the rupee-dollar exchange rate variation minimal, sources said. "But, a definite figure would be known only by the weekend after we get figures for remaining three days. This could change the average and pump prices would change accordingly," an industry executive said.
 
Read complete story at Economic Times

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