New Delhi.25.09.2024: According to a report by CLSA, Fuel prices (Petrol and diesel) in India might decrease after October 5, based on comments from Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas. He mentioned that state-run oil marketing companies (OMCs) could reduce fuel prices if international crude oil prices remain low for a long time.
Fuel prices in India haven’t changed since March 2024. The possible price cut would depend on crude oil prices continuing to fall. Recently, crude oil prices have dropped significantly, with Brent Oil priced at $74.15 per barrel and WTI at $71.16 per barrel.
CSLA also noted that lowering fuel prices might be a strategic move for the upcoming elections in Maharashtra, expected in November. At the same time, the government could raise excise duty on petrol and diesel. Currently, excise duties are set at Rs 19.8 per litre for petrol and Rs 15.8 for diesel, which are 40-50% lower than their 2021 peak levels. A potential excise duty hike could generate an additional Rs 16,500 crore for petrol and Rs 5,600 crore for diesel annually.
Despite the positive impact of lower crude oil prices on Indian OMCs like Indian Oil, Bharat Petroleum, and Hindustan Petroleum, the possible price cut and excise duty increase could affect their profits. In Delhi, petrol is currently priced at Rs 94.72 per litre, and diesel at Rs 87.62 per litre.
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