Winning Bizness Desk

Mumbai. Crude oil prices in the international market have reached a low of 7 months and are currently at $ 92 a barrel, besides, analysts are predicting further cuts in prices. In such a situation, the price of petrol and diesel can be reduced by up to Rs 3 per liter in the coming days in India. Earlier in February, crude oil was close to $ 90 a barrel, which reached $ 125 a barrel in June. In the coming days, crude may come to $ 85 per barrel and in the wake of such circumstances, the prices of petrol and diesel may come down by Rs 2 to 3 per liter.

Crude has weakened by about 26%

According to Prashant Vashisht, Vice President and Co-Group Head of rating agency Icra, petrol and diesel prices in the country increase by 55-60 paise per liter when crude oil becomes costlier by $1 per barrel. Similarly, if there is a reduction of 1 dollar, the price of petrol and diesel also decreases by 55-60 paise per liter. Crude prices in the international market were close to $125 a barrel in June, which reached $92 a barrel in the first week of September. Accordingly, crude has weakened by about 26%.

The economies are under pressure

The economies of China and many countries in Europe are under pressure. In such a situation, the demand for crude may remain weak going forward. On 22 May, the central government reduced the excise duty on petrol and diesel, giving a big relief. Excise duty on petrol was reduced by Rs 8 and on diesel by Rs 6. Since then, there has been no cut in the prices of petrol and diesel and no increase in the prices.