Finally some good news for the masses and petrol heads alike. There will be a drop in the price of petrol and it could be to the tune of Re 1 per litre. A drop of Re 1 is considerable by what has been the trend of late and since April we haven’t seen such a significant drop.
"Petrol prices would be reduced by more than Re 1 a litre if international gasoline rates continue to decline in the remaining four days of this month. But, oil companies want to retain about 54 paise before price reduction this time because the government did not allow it to raisepetrol prices on July 15," a person with knowledge of the matter said.
"A final call will be taken after an informal discussion with the government."
The revenue loss for state-run marketers on diesel is expected to come to less than Rs 1.40, taking the fuel closer to deregulation. State-owned BPCL, IOC and HPCL have a freehand when it comes to fixing the prices of petrol since June 2010, but company executives have gone on to say the oil ministry still exercises informal control.
The drop of Re 1 will definitely not provide a major relief to motorists in India, but any price cut is welcome. Although there are speculations about this price cut a lot also depends on the global crude prices.