With the UPA government coming under flak from its allies and Opposition parties for increasing petrol prices time and again and burdening the common man, the oil marketing companies (OMCs) are likely to meet early next week to discuss a possible reduction in the price of petrol by around 80 paise to a rupee.
Softened crude prices
Attributing the approach to reconsider the price hike effected recently to the softening of global crude oil prices, officials in the Petroleum and Natural Gas Ministry said the rupee depreciation and crude oil prices would come up for discussion on November 14 to explore the possibility of reducing petrol prices.
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If effected, it would be the first reduction in petrol prices since January 2009. “Global oil prices fell sharply on Friday and if the rates sustain and the rupee does not depreciate any further, a reduction of Rs. 0.80 a litre in petrol prices is possible,” a senior Indian Oil Corporation official said.
Oil companies will consider average oil price in the first fortnight of November when they review retail prices. International rates of petrol have come down to about $115 per barrel (from $123 last month), officials said.
New York's main contract, light sweet crude for delivery in December, retreated 23 cents to $97.55 per barrel. Brent North Sea crude for December delivery shed 61 cents to $113.10.
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State-owned oil firms last week hiked the petrol price by Rs. 1.80 per litre, the fourth increase this year, as the rupee fell from Rs. 46.29 a dollar to Rs. 49.40 a dollar.
Earlier this week, IOC chairman R.S. Butola stated that petrol prices had come down from $125 per barrel to $115 per barrel. But this has to sustain together with the rupee stabilising against the dollar.