State-run oil companies have slashed the petrol prices by 91 paise per liter and diesel by 84 paise per liter, effective from Monday. Adding on this, Brent crude oil prices, viewed as the benchmark for global oil prices, hit a four year low this Friday when OPEC (Organisation of Petroleum Exporting Countries) did not reduced the output even when the prices dropped.
Moreover, the international crude oil price for the Indian Basket (evaluated by PPAC - Petroleum Planning and Analysis Cell; running under Ministry of Petroleum and Natural Gas) plummeted to a multi-year low on Thursday - USD 72.51 per barrel compared to USD 76 per barrel earlier. Speaking of the falling fuel prices in the country, this price cut is the seventh consecutive reduction in the petrol prices over the last four months. While for diesel it is the third successive reduction since this October, earlier diesel was on a rise from couple of years.
Earlier last month on November 13, instead of decreasing the fuel prices further, government has raised the excise duty on both the fuels by Rs. 1.50 per liter. So the expected reduction equalised with the raised duty cut! With this increased excise duty cut, government draws an additional revenue of about Rs 13,000 crore.
Since the global oil prices are falling ever since starting this year, lets see what 2015 hold for us with respect to fuel prices. Happy Motoring!
Source : CarDekho