After what seemed to be a rollercoaster ride past month, the prices of petrol gets another jitter, and oil companies announce another slash of Rs 2 per litre today. This owes to the unrelenting descend of crude oil prices in international markets. Indian oil companies will have a word over this matter in a meeting today evening.
Relenting to public uproar over the steepest price change of petrol in Indian history, the petrol prices saw a trim of Rs 2.02 a litre against the rise of Rs 7.54 a week before that. With the petrol prices moving down south in international market from $116 to $96 per barrel, the government is willing to let the common man enjoy it by offering a relief of Rs 2 a litre.
However, as the value of Indian rupee is depreciating in the international market, it remains pretty sketchy what the government will do against the prices of subsidized fuels.
After climbing to the extreme peak, petrol prices have decided to go down – a bit. Starting today, petrol price will see a drop of Rs 1.60 a litre. The country’s oil companies, including Indian Oil, Hindustan Petroleum and Bharat Petroleum have announced a price drop form June 1.
The past weeks witnessed international oil price and rupee-US Dollar exchange rate doing a roller coaster. After thorough study and evaluation, the drop in price has been decided. The international gas price had dropped from $124 a barrel to $114-115. On the other hand, the Indian rupee has witnessed a downfall from Rs 53.17 to Rs 55.30 in exchange of US dollar.
Senior BJP leader and former Union minister of petroleum, Ram Naik said, “The burden of petrol price hike petrol can be reduced by suitably adjusting import duty and excise duty instead of reducing them.”
He went on to identify that the pronouncement in 2003 of adding 5% blending of ethanol with petrol would have cushioned the steep rise in petrol prices.