Petrol-Diesel Price: Petrol-Diesel will be cheaper! Reduction in the price of crude oil can provide relief
Due to the continuous fall in the price of crude oil in the global market, soon the prices of petrol and diesel are also expected to decrease. Experts also estimate that the time has come to move the retail prices of petrol and diesel which have been frozen for about 8 months. It is being speculated that the prices of petrol and diesel can be cut soon.
Highlights
⏩ Due to the continued softening of crude oil, the loss of government refinery companies has been completed.
⏩ Due to the slowdown in the economy, fuel consumption is decreasing worldwide.
⏩ Due to this, there is pressure on OPEC, the organization of oil-producing countries, to reduce the prices.
New Delhi. Although there has been no increase in the prices of Petrol-Diesel since April 6, 2022, soon there is a possibility of further decline in its prices. That too not a minor cut, but the prices are estimated to be reduced by 10 percent. These speculations are being made due to the huge fall in the price of crude oil in the global market.
Actually, the price of Brent crude in the global market has come down to the level of January. Right now it is trading around $85 per barrel, while WTI is around $78 per barrel. In the recent past, it had reached up to $81. At the beginning of the year, when the price of crude oil had gone up to $ 150, now it has come down by 50 percent. Commodity expert Ajay Kedia says that when there is a decrease of $ 1 in crude, the country’s refinery companies save 45 paise per liter of oil. In this context, due to the continuous softening in the prices of crude oil, the loss of government refinery companies has also been completed till now. Therefore, the possibility has increased that now the rates of petrol and diesel will also be cut.
Experts say that we cannot say how big this reduction will be, but it can come down by about 10 percent. That is, petrol-diesel can be cheaper by about Rs 9 to 10 per liter. However, such a big cut in oil prices cannot be done all at once, but as before, its rates can come down in a sequential manner.
The main reason for crude being cheap
There are three biggest reasons for the fall in the price of crude oil. Firstly, due to the slowdown in the global economy, fuel consumption is decreasing worldwide. Due to this, there is pressure on OPEC, the organization of oil-producing countries, to reduce the prices. Fuel consumption has reduced due to the lockdown due to protests and increasing corona infection in China. Despite all the sanctions of America and Europe, Russia’s oil is being supplied in the global market, due to which the supply is showing more than the demand, and its effect is also visible in the prices of crude oil.
Reduction in losses of oil companies
Recently, it was claimed by the government oil companies that they are incurring a loss of about Rs 15 per liter on petrol and diesel. However, in the changing environment, companies are now saving about Rs 245 per barrel of oil. In such a situation, the losses of the companies are also coming to an end and they are fast returning to profits. Union Petroleum Minister Hardeep Singh Puri had also said in the past that government oil companies are now making profits on the sale of petrol, but a loss of Rs 4 per liter is still being incurred on diesel.
Price will take time to come down
Commodity expert Kedia says that the pressure on crude oil prices in the global market will increase further. Due to the news of sluggishness in the American economy, the consumption of oil has started decreasing all over the world. China is also struggling with its own problems and its recent industrial figures are also disappointing. In such a situation, the price of crude can go up to $70. It will be beneficial but it may take some time. It takes time for cheaper crude to leave the refinery and reach the customer.
