New Delhi: With nearly a $7 per barrel drop in global crude oil prices over the past nine days, there are chances of petrol and diesel prices dropping sharply. As Brent crude oil corrected to a three-month low on Thursday, dipping to $72.50, oil PSUs should be looking to slash rates.
While oil PSUs, in charge of daily revision of oil prices, have been passing on benefits to customers but the recent drops merit a sharper drop, according to experts. It may be noted that petrol and diesel became cheaper by 6 paise and 12 paise per litre respectively and on Friday, petrol rates were down by 12-17 paise while diesel price was slashed roughly 12 paise.
Even as the rates dropped over the past couple of days, they are still considerably high if compared to the sudden global dip. As per the revision clause, state-run oil companies are required to fix the domestic rates in accordance with the global metrics, but it seems that the entire benefit is yet to be passed on to customers.
However, the government has been apprehensive about oil rates lately, claiming that a drop in rates would affect its end goal of achieving consolidation and fiscal prudence.
However, in such a scenario, the entire burden is on the customer to shell out extra money, even as international rates witness a sharp dip. Having said that, Indians have been awaiting a significant cut in fuel prices for a long time as the rates in recent months have been no less than exorbitant. The government has also received a lot of flak over the high prices of petrol and diesel.