Fuel prices may dip on global cues

New Delhi: Indian basket crude oil price has fallen by around 10 per cent in last 15 days raising hope of some relief on petrol and diesel prices in coming days.

Indian basket of crude oil fell from around $ 55 a barrel on March 1 to $ 50 per barrel on Monday. International oil prices have now reversed almost all the gains notched up since Opec said on November 30 that it was cutting output. Despite Opec sticking to its pledge to cut, inventories have continued to rise.

International crude oil prices on Tuesday fell to three-month low after Opec reported that crude inventories in developed countries had risen above the five-year average in January despite production cuts by some of the world’s largest exporters.

“Even if there is no immediate cut in fuel prices as average of last 15 days may be taken while calculating new prices, if the trend continues petrol and diesel prices will be softened,” said senior government official.

Due to increase in crude oil prices, petrol prices in India were raised to  Rs 71.13 a litre and diesel to Rs 59.02.

In the past decrease in crude oil price was matched by the government with the frequent increase in taxes which meant that consumer did not entirely benefited from lower prices.

Currently Central taxes of nearly Rs 28 per litre is imposed on petrol and Rs 24 per litre to the price of diesel. The Centre levies Rs 21.48 of excise duty and Rs 6 of custom duty on per litre of petrol. On diesel, the Centre imposes Rs 17.33 excise duty and Rs 6 custom duty on per litre of diesel (unbranded).