For months, the prices of petrol and diesel have remained unchanged. However, there is now hope for a decrease in fuel prices. Media reports suggest that the government is considering reducing diesel and petrol prices. Following these reports, oil marketing companies’ shares have dropped today.
Government Discussing Price Cut
According to Business Today, recent declines in crude oil prices have increased the profits of oil companies. This profitability means that government oil companies might be able to offer some relief on fuel prices. Discussions are ongoing among government officials, who are monitoring global changes.
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Last Change Was Six Months Ago
There has been no change in diesel and petrol prices for about six months. The last adjustment occurred on March 14, 2024, just before the Lok Sabha elections, when prices were reduced by ₹2 per liter. After this cut, petrol in Delhi cost ₹94.72 per liter, and diesel cost ₹87.62 per liter.
Significant Drop in Crude Oil Prices
Globally, crude oil prices have fallen significantly this week. Brent Crude prices dropped by about 8%, and West Texas Intermediate (WTI) prices fell by around 6%. Today, Brent Crude is trading below $73, and WTI is below $70 per barrel, marking the lowest level in nine months.
Weak Outlook for Crude Oil
The outlook for crude oil prices is weak. US economic data has softened oil prices, and OPEC Plus (major oil-producing countries) is preparing to increase production. However, they have agreed to delay this increase until October-November. Overall, the outlook for crude oil prices seems weak in the coming months.
Impact of Upcoming Elections
With several state assembly elections upcoming, there is increased hope for a fuel price cut. Even though reducing fuel prices before the Lok Sabha elections did not benefit the BJP significantly, the party may be hoping for a similar move before state elections. This expectation has led to a drop in oil marketing companies’ shares, including HPCL, BPCL, and Indian Oil, which have fallen by more than 2%.