With the announcement of the US-Iran agreement, there has been a huge fall in the prices of crude oil. International crude oil prices fell by more than 4% during early trading on Monday. Now it remains to be seen how long the central government provides relief to the common people of India by reducing the prices of petrol and diesel.
As soon as the news of war clouds clearing in the Middle East comes brent crude It has fallen by more than 4% to around $83.75 per barrel. WTI crude fell nearly 5% to around $80.87 per barrel. According to sources in the Union Petroleum Ministry, the government is keeping an eye on the situation. The country’s oil marketing companies have suffered huge losses during the period of tension in the Strait of Hormuz. The Center had also cut excise duty. Despite this, when the losses went out of control, the prices were increased. This cannot be compensated in a day.
Petrol and diesel prices increased by 7 to 8 rupees
Sources say that if everything goes well in the future, the government will definitely provide relief to the general public. At present the situation is being monitored, the clouds of crisis are now clearing. Let the sky be clear. Obviously the prices of petrol and diesel will also come down. Sources say that Indian oil marketing companies are compensating for the losses incurred during the recent West Asia crisis, because then global crude oil prices had reached around $ 120 per barrel. During this period, the companies did not pass the entire burden on the customers for a long time. But since mid-May, the prices of petrol and diesel have increased by about Rs 7 to Rs 8 per liter. If crude oil prices remain stable as they come down, the losses of the companies will be compensated soon.
Excise duty on petrol was reduced
In March, the government had reduced the excise duty on petrol by Rs 3 per litre. Whereas the excise duty on diesel was reduced to zero, because the tax rates are already at a very low level, hence there is very little scope for providing immediate further relief through tax cuts. In such a situation, the government will take steps to provide relief to the general public only when the prices come down and remain stable. Remember that India exports more than 85% of its crude oil requirement. International oil prices have softened with the announcement of the US-Iran agreement, but the cost of imports is still affected by the rupee-dollar exchange rate and high freight and insurance costs. Sources say that the government is keeping an eye on every aspect. It will take some time.
Keep an eye on crude oil prices
It is worth noting that recently Union Petroleum Minister Hardeep Singh Puri had said that he believes that if global crude oil prices remain at a low level for a long time, customers can benefit. Continuous decline in crude prices will improve the financial condition of oil companies. With this, there will be scope for reducing prices. If the price of Brent crude remains in the range of 80 to 85 dollars per barrel for several weeks or months, then the prices of petrol and diesel in India may soften by about 2 to 5 rupees per liter.
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