‘…then the price of petrol and diesel will decrease’ – the movement of Crude Oil will be monitored for the next few days
internationally crude oil prices (Brent Crude Oil Price) If they remain at the lower level for a few more days, then only then the prices of petrol and diesel in the country will come down. Official sources said domestic retail prices are determined on the basis of a 15-day ‘rolling’ average. In such a situation, the prices will come down here only after a continuous fall in the prices at the international level. Global benchmark Brent crude oil prices have remained roughly in the range of around $80-82 per barrel in November (till November 25).
On Friday, the price of crude oil had decreased by about $ 4 per barrel. After that, due to selling in Brent futures, its price in London’s ICE closed down by $ 6 and at $ 72.91 per barrel. Sources said that this seems to be an immediate response to the fear created by the new form of Kovid, Omicron.
How are the prices of petrol and diesel determined?
Public sector petroleum companies… Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation (HPCL) revise the prices of petrol and diesel on a daily basis. But this revision is based on the average benchmark international rates in the last fortnight.
A source said, “Friday’s fall in rates had naturally given hope that the prices of petrol and diesel at petrol pumps would come down. But retail prices are not fixed like this. Since international crude oil prices have remained in a narrow range for most of November, such Friday’s fall will not have any significant impact on average prices. “At the international level, when the fall in prices continues for a few more days, only then the prices of petrol and diesel will come down here,” a source said.
Recently, major oil consuming countries such as India, including the US, Japan and South Korea, announced the release of crude oil from their strategic reserves in a joint effort to reduce international crude oil prices. But even these announcements have not had much impact on international prices.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)