Petrol Price Cut: Are you paying less than global Indian crude basket price?
With a Re 1 for petrol and Rs 2 cut for diesel on August 15, 2016, Oil Marketing Companies (OMCs) in India have brought down petrol prices four times in the past two months.
While crude oil prices globally have seen some softening over a similar time frame, they shot up nearly 10% last week to hover around $45 per barrel.
However, Indian consumers, despite the decontrol, have been paying a higher price for petrol and diesel as the Government has raised excise duty on oil to nearly Rs 20 to a litre in many instalments over the past year and a half.
Therefore, the new trajectory of cutting prices are a welcome step.
The question we are trying to answer is: where does India’s petrol price stand with respect to the price it pays in the international market?
As per Petroleum Panning & Analysis Cell of the Ministry of Petroleum & Natural Gas, Government of India, India paid $39.88 for a barrel of oil in the month of April. This increased to $45.01 and $46.96 for a barrel in May and June, respectively.
Petrol prices in India also went up in tandem in May and June before easing in July and August as crude oil prices eased to $43.52 for a barrel.
On August 12, India’s crude oil basket price stood at $41.82 for a barrel and pricing for the fortnight was $43.20 for a barrel.