The prices of crude oil in the international market have reached the lowest since January this year. International benchmark Brent has reduced by 81 dollars and the American crude has reached around 74 dollars per barrel. In the wake of this, for the first time in this year after May, the prices of petrol and diesel can go down. Especially due to the large downfall in the prices of Brent, the average price of crude oil for the Indian refinery (Indian Basket), has reduced to 82 dollars per barrel, which was 112.8 dollars per barrel.
This way, in the last 8 months, the prices of crude oil for refining companies have reduced around 27% or by 31 dollars. As per SMC Global, on the reduction of every 1 dollar in crude price, the country’s oil companies reap benefits of around 45 paisa on refining per litre. Therefore, the prices of petrol and diesel should reduce by 14 rupees per litre this way. But as per experts, this will take time and the complete reduction of prices will not take place in one go.
As per the current prices of petrol and diesel in the country, the Indian Basket of crude oil should be around 85 dollars per barrel, but this has fallen down to around 82 dollars, and at this rate, the oil marketing companies will save around 245 rupees on refining per barrel (159 litres).