Petrol-diesel may soon become cheaper, crude oil below 70 dollars; Your pocket can get relief up to ₹ 4 per liter

Relief news is emerging for the common people who are troubled by the increasingly expensive petrol and diesel. Crude oil prices in the international market have fallen below $70 per barrel, after which the expectation of reduction in the prices of petrol and diesel has increased in India too. Experts believe that if the current situation continues, government oil companies will reduce the prices of petrol and diesel by the end of July or beginning of August. 2 to 4 rupees per liter Can cut up to.

Crude oil is cheap, but why has the price not decreased yet?

Although the leading private sector fuel company Nayara Energy has made petrol cheaper by Rs 5 and diesel by Rs 3 per liter from July 1, but the country’s state-run oil companies—Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL)—have not made any changes in the prices yet.

The biggest reason for this is that government companies are still refining the crude oil which they had purchased at higher prices a few weeks ago. Therefore, the impact of the decline in the international market is not immediately visible on retail prices.

Why is there a delay?

According to experts, the price of fuel in India does not depend only on crude oil. There are many other costs also involved in this, such as-

• cost of refining
• transportation expenses
• dollar-rupee exchange rate
• Taxes of central and state governments
• margins of oil companies

For this reason, despite the fall in international prices, prices in the domestic market usually fall. 2 to 4 weeks It takes time.

Government companies themselves had incurred losses earlier

There was a huge jump in the prices of crude oil during the increase in tension in the Middle East. At that time, the government oil companies did not pass the entire cost on to the customers and suffered huge losses themselves.

According to experts, the sale of petrol, diesel and LPG to government oil companies between March and May was approximately Rs. Rs 1 lakh crore Under-recovery loss of Rs. Now companies first want to compensate for that loss.

How cheap can petrol and diesel become?

Energy market experts believe that if crude oil prices remain around $70 per barrel or go below—

• petrol 2 to 4 rupees per liter Could be cheaper by up to Rs.
• Almost similar reduction is possible in diesel also.

However, instead of making huge cuts, the government may prefer to provide limited relief so that the financial condition of oil companies can also improve.

Nayara Energy has already reduced the prices

Nayara Energy is one of the largest private fuel retailer companies in the country and has more than 7,000 petrol pumps.

The company has from July 1—

• petrol Rs 5 per liter
• diesel Rs 3 per liter

Made cheaper. This cut has been made as a withdrawal of the prices increased in March.

Relief in LPG and ATF also

The government has also given relief to commercial consumers.

• Price of 19 kg commercial LPG cylinder 173 to 184 rupees Has been reduced by.
• Aviation Turbine Fuel (ATF) is also approximately Rs 5 per liter It has become cheaper.

However, there has been no change in the prices of domestic 14.2 kg LPG cylinders at present.

Big fall in crude oil

Crude oil prices had risen sharply a few weeks ago during the Middle East crisis. Now after the situation has become normal, a huge decline has been recorded in the prices.

Experts say that due to increase in supply in the global market and relatively weak demand, crude oil prices may remain under control in the coming times.

Petroleum Minister also gave indications

Union Petroleum Minister Hardeep Singh Puri Already indicated that there may be relief in fuel prices in the coming months. He says that oil companies are first using the stock of expensive crude oil and then the benefit of reduction in prices will be passed on to the consumers.

Will common people get relief soon?

If there is no new geopolitical crisis in the international market and crude oil prices remain at the current level, then government oil companies can also cut the prices of petrol and diesel in late July or early August.

In such a situation, there can be a positive impact on inflation due to reduction in transport costs along with drivers.