NEW DELHI: Oil marketing companies (OMCs) could reduce petrol and diesel prices by Rs 2-3 per litre if the international crude prices remain stable, according to a report by ICRA. The rating agency noted that the recent decline in crude oil prices has improved margins on retail auto fuels, allowing state-owned companies to consider price cuts.
The average price of India’s crude oil imports fell to $74 per barrel in September, down from $83-84 per barrel in March, when petrol and diesel prices were last reduced by Rs 2 per litre.
“ICRA estimates that the OMCs’ net realisation was higher by Rs 15 per litre for petrol and Rs 12 a litre for diesel vis-a-vis international product prices in September 2024 (till September 17).
The retail selling price (RSPs) of these fuels have been unchanged since March 2024 (Rs 2/litre was reduced on petrol and diesel on March 15, 2024) and there appears to be headroom for their downward revision by Rs 2-3 per litre, if crude prices remain stable,” said Girishkumar Kadam, Senior Vice President and Group Head, Corporate Ratings, ICRA.
The last revision in fuel prices took place in March, with a Rs 2 per litre cut for both petrol and diesel. Crude prices have seen a significant drop in recent months, primarily due to weak global economic growth and high US production.