State-run fuel companies may soon cut petrol and diesel prices if global oil prices remain low, according to Oil Secretary Pankaj Jain.
Petrol and diesel prices may soon be cut if global oil prices remain low as state-run fuel companies may consider reducing prices if the global crude rates stay lower for extended period, Oil Secretary Pankaj Jain said. This comes as India is seeking increased output from OPEC+ and maximizing crude purchases from cost-effective suppliers like Russia.
Oil Secretary Pankaj Jain indicated that petrol and diesel prices could be lowered if global crude rates stay low. With Brent crude recently dropping below $70 per barrel, state-run fuel companies are considering reducing prices to align with favorable market conditions.
Pankaj Jain, secretary at the Ministry of Petroleum and Natural Gas, said that oil companies will consider reducing fuel prices if the price of crude oil remains low for an extended period.
Why are crude oil prices falling?
Oil prices recently fell to near three-year low, boosting profitability of fuel marketing companies and potentially paving the way for a reduction in pump prices. On Tuesday, Brent crude dropped below $70 per barrel for the first time since December 2021 amid worried about slowing economic growth.
This has resulted in favorable marketing margins for fuel retailers, particularly state-run companies which dominate 90% of the market.
Crude oil prices on Thursday rose ₹51 to ₹5,709 per barrel in futures trade as participants widened their positions following a firm spot demand. On the Multi Commodity Exchange, crude oil for October delivery traded higher ₹51 or 0.9 per cent at ₹5,709 per barrel in 11,306 lots.
Globally, West Texas Intermediate crude oil was up by 1.26 per cent to USD 68.16 per barrel, and Brent crude traded 1.32 per cent higher at USD 71.54 per barrel in New York.
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