Petrol-diesel prices will fall only if there is a definite reduction in international crude

New Delhi, Dt
Global crude oil prices have plummeted following the discovery of a new variant of the corona virus, Omicron, in South Africa. As a result, people are hoping for lower petrol and diesel prices in India. However, government sources said that the government oil companies are likely to reduce petrol and diesel prices only if there is a definite drop in international crude oil prices and it lasts for a few more days.
According to sources, local crude oil prices fluctuate on a 15-day average. Global benchmark Brent crude has been trading at થી 70- 7 a barrel since November. Brent crude was down ૪ 5 a barrel until the Asian timestamp on November 9. However, crude oil prices in ICE London fell further by US 5 to ૯ 4.31 a barrel after heavy selling in Brent futures after the US market opened.
Sources said that after the discovery of a new variant of the corona virus, Omicron, in South Africa, crude oil prices fell sharply on the back of fears that growth in the global economy would be hampered. State-owned oil companies IOC, BPCL and HPCL review petrol and diesel prices on a daily basis, but the basis of this review is the average of the benchmark international fuel rates in the previous fortnight. Therefore, in Sunday's meeting, the price has been fixed on the basis of the average of the previous fortnight.
Petrol-diesel retail prices were also expected to fall in the country, which has seen a sharp rise in international crude oil prices, but there has been no decline in prices at petrol pumps. There were no major fluctuations in international crude prices in November. So the impact of the fall in crude prices on Friday was not seen on retail prices.
"We will see a drop in retail prices of petrol and diesel only if international crude prices fall further in a few days," the sources said. Leading countries, including the US, India, Japan and China, have recently decided to pour crude oil into the market from reserves to reduce petrol and diesel prices. Therefore, the expectation of reduction in petrol-diesel prices was high. But amid worldwide concerns over the omicron virus, OPEC nations are due to meet on December 1-3, in which they may announce a reduction in crude production.
If OPEC countries cut crude production, hopes of lower petrol-diesel prices could be dashed. In the country, on November 8, the central government increased the excise duty on petrol by Rs. 3 and Rs. Petrol and diesel prices were reduced after a reduction of Rs. Since then prices have remained stable.