Crude Oil Price on August 18 reached a low of $100.04 or Rs 6108.44 per barrel, exchange rate Rs 61.06 per dollar. The crude oil has lost further 0.19% in early trade this morning, which could convince the oil companies to pass on the reduction in prices to common man.
Prices of crude oil have been consistently coming down for the past three months. As crude procurement prices remain low and with the rupee remaining stable, the petroleum companies may take a decision on a minor price reduction on account of lowered input costs.
But much of this decision will depend if the crude oil procurement prices can be sustained at $100 to $101.50 dollar's a barrel levels.
The government had given the oil companies last year the power to sell petrol at a price related to markets so that it could turn profitable, while for diesel, it mandated a hike of 50 paise per month.
A media report suggested today that people are returning to petrol run cars as the gap between the two major fuels comes down.