India's State-Run Oil Companies to Cut Petrol Prices by Rs 2 per Litre

Strategic Insights -

Petrol prices in India are likely to see a reduction of Rs 2 per litre from Thursday midnight, following a slight dip in Singapore gasoline prices. This will be the second consecutive price decrease in two weeks since the deregulation of petrol prices in June 2010. State-run oil retailers, including Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL), and Indian Oil Corporation (IOC), are set to revise their prices based on international rates every fortnight, as per a recent oil ministry directive.

Key Takeaways:

  • India's state-run oil marketing companies are likely to reduce petrol prices by Rs 2 per litre from Thursday midnight.
  • The petrol price reduction will be the second consecutive decrease in two weeks since the deregulation of petrol prices in June 2010.
  • State-run oil retailers, including BPCL, HPCL, and IOC, will earn an average margin of $8 a barrel on fuel, higher than $5.74 in mid-November.
  • The oil companies will revise prices based on Singapore FOB (Free on Board) rates every fortnight.
  • The extent of the price cut will depend on international rates and exchange rates by November 30.
  • Oil companies may decide on a smaller cut to make up for past losses, but the oil ministry is keen on adopting a transparent pricing system based on international rates.

Statistics:

  • Petrol prices are likely to decrease by Rs 2 per litre from Thursday midnight.
  • The previous petrol price cut was Rs 1.82 per litre on November 15.
  • Brent crude oil prices rose $3 a barrel to $109.40 per barrel on Monday.
  • The average margin for state-run oil retailers on fuel is $8 a barrel, higher than $5.74 in mid-November.

Sources:

  • The Economic Times, "State-run oil cos eyeing Rs 2 cut in petrol prices," November 29, 2022.
  • Oil company executives, cited in The Economic Times.