Fuel price cut for two successive days provides hope for Indians

After an approximate span of six month in which petrol and diesel prices rose steadily and reached record levels across the world, oil marketing companies cut prices for the second day in a row. On Thursday, oil marketing companies (OMCs) slashed the cost of petrol and diesel by 21 paise and 20 paise, respectively.

In the capital, the revised rate has reduced the retail price of petrol to Rs 90.78 and diesel to Rs 81.10 per litre, respectively.

Fuel prices that have exceeded the Rs 100 per litre threshold in many parts of the country remain to be above that level even now, despite the recent decline in retail prices. Petrol and diesel costs have jumped 26 times this year, with petrol and diesel costs increasing by Rs 7.46 and Rs 7.60 per litre respectively so far.

The recent reduction in crude oil prices has been triggered by both increased supply of crude oil and fears about demand. Prices have dropped due to anticipation of new Covid-19 sanctions in Europe and increased crude oil output from the United States.

According to sources, amid increasing crude prices, Oil Marketing Companies had kept prices steady for a 24 day stretch because fuel prices have become a political problem in the forthcoming state assembly elections of West Bengal, Assam, Tamil Nadu and Kerala.

While price cut might not be enough to benefit people, Oil Marketing Companies move to lower rates in reaction to a drop in global oil prices is a positive sign. This also demonstrates that if global oil prices continue to fall, Oil Marketing Companies will probably relocate the beneficial margin to reduced fuel costs.