Future of Fuel Prices Hangs in Balance Amid Global Oil Fluctuations

The price of international crude oil, reaching a three-year low, has brought speculation around the potential revision of petrol and diesel prices in India. Industry insiders and officials indicate that price cuts might only occur if these lower rates hold consistently. Additionally, expectations are building for potential price adjustments ahead of upcoming state elections.

The price of international crude oil, the cornerstone for petrol and diesel production, recently hit a three-year low before seeing a modest recovery. However, experts suggest that any changes to domestic fuel prices will depend on the longevity of these lower rates.

Global oil benchmark Brent crude futures dipped below $70 per barrel earlier this week, marking the first time since December 2021, only to rise again following Hurricane Francine's impact on Gulf of Mexico crude supply. By Thursday, Brent crude was trading above $71 per barrel, while West Texas Intermediate hovered around $68.

Discussions within the industry suggest that petrol and diesel rates, which have been static for over two years despite a brief pre-election reduction, are on the table for revision if the declining international trend persists. 'Oil companies will make appropriate decisions on reducing fuel prices if international prices stabilize at lower levels,' said Oil Secretary Pankaj Jain at a recent event.

(With inputs from agencies.)