Fuel prices may be cut tomorrow

Fuel prices may be cut tomorrow

Oil companies may cut petrol and diesel prices by Rs 2 to Rs 2.50 in the next revision due on March 15 as crude oil prices have reduced from close to $56 per barrel to $54 per barrel.

Due to elections in five states, the oil companies had abstained from price revision in the past two months.

However, cooking gas (LPG) prices were revised on February 1 and March 1.
In the last oil price revision on January 15, petrol price increased by 42 paise per litre, excluding VAT. Diesel price was hiked by Rs 1.03 per litre.

A source said international crude prices have come down in the past fortnight form nearly $56 per barrel to $54.

The dollar-rupee exchange rate has also come down upward of 68 to nearly 66 in the duration.

“This makes a case for a downward revision in oil prices on the next revision date of March 15,” the source said, adding that it would happen only if the government does not decide to hike excise duty on petrol and diesel.

“If there is any hike on duty (excise), then the price math will not work,” the source
said.

On Monday, oil prices hovered at a three-month low in the international market, setting the stage for another cut in the next fortnight April 1.

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