Petrol, diesel prices to fall by 45-50 paise

The national oil companies—IOC, BPCL HPCL — are planning a marginal reduction in the price of petrol and diesel as a result of the fall in crude oil prices in the international oil market. Sources said the reduction in the prices of the two transportation fuels will be in the range of 45 to 50 paise per litre. The new prices will be applicable from Sunday.

The Indian basket of crude oil has averaged $23.72 a barrel this month as against the average of $26.65 per barrel cost in the second half of October. Product prices in the international market have also fallen, though the reduction is not as much as in case of crude oil. Both diesel and petrol prices in the global oil markets have fallen in the range of $ 1.5 to $ 2 a barrel. Benchmark brent crude has fallen from $27.31 a barrel in the second fortnight of October to $24.21 a barrel this month. The exact quantum of reduction in the price of these two fuels will be decided in a meeting of the oil company and petroleum ministry officials, scheduled for Friday.

Confirming the move, petroleum minister Ram Naik told newsmen on the sidelines of a conference, “I am happy that international (crude) prices have fallen. So if the trend continues, on November 16 oil companies would revise petrol and diesel prices downward.”