Retail fuel prices may see a price cut by Rs.2 per litre in the coming days if the international fuel prices continue to go down and rupee-dollar exchange maintains the current trend.
International crude oil prices have been falling after a steep rise till March 8 when it touched $70 per barrel. The retail prices may now be reduced in the coming days as India’s crude cost has fallen below $64 per barrel from $68 per barrel a fortnight ago, recording a decline of 5 percent, The Times of India said in a report.
Refineries and retailers base the price of fuel on 15-day rolling average price of products and the rupee-dollar exchange rate.
The prices fell by more than 4 percent to $61.93 per barel on March 23 as COVID-19 cases are surging again in several countries including India and European countries, the report noted, adding that the lockdown in Europe dashed hopes of early demand recovery.
During the pandemic, the central government raised the excise duty on petrol to Rs 32.98 a litre from Rs 19.98 a litre.