If crude oil prices continue to plummet, oil and gas prices could plummet in India. According to PTI, sources in the Indian government (GoI) say oil prices in India can only be reduced if the global oil prices fall further. Official sources told PTI that the price of petrol and diesel in the retail market is on average 15 days. Therefore, if global oil prices continue to plummet, the 15-day moving average will immediately lead to a reduction in the price of petrol and diesel in the Indian retail domestic market.
Oil PSUs in India, India Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) review daily oil and diesel prices. But this price review is based on a 15-day global oil price hike. This is to protect domestic gasoline and diesel consumers from fluctuations in global oil prices.
“The price of natural gas retail pumps will also fall on Friday. But retail prices are not like that. Global oil prices are mostly limited in November, so on average Friday, there will be no significant change over the last two weeks. “We are seeing a reduction in prices,” he said.
On Friday, after trading between $ 80 and $ 82 a barrel in November, Brent crude oil prices fell by $ 4 a barrel during the Asian session. However, this fall will only deepen as US markets open. Following the opening of NYMEX, Brent Crude futures fell to $ 6 per barrel and closed at $ 72.91 per barrel at ICE London.
Retail gasoline and diesel prices have not changed since November 5, when excise tax was reduced. ₹5 per liter and ₹10 liters were released respectively. Discounts offer additional benefits to consumers as a result of the 27 States / US rate hikes.
Recently, major oil consumers, such as the United States, Japan and South Korea, as well as India, have announced plans to release crude oil in a joint effort to reduce global crude oil prices. Even these ads have not been able to influence global prices. However, the revised CV-19 threats now serve the desired purpose.
Oil producers Cartel, OPEC may still have a say in the matter, with the group scheduled to meet on December 1-2, which could reduce production targets for 2022.
Therefore, if OPEC announces a slower production than expected, international crude oil prices could recover, sources said.
(With PTI inputs)
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