Global crude oil prices fell marginally from the third week of last month, even as India prepares for the next retail price revision of petrol after it was de-regulated almost three weeks ago.
On Tuesday, global crude oil prices hovered between $74-75 a barrel, marginally lower than $77 a barrel on June 25, when the government announced its decision to free petrol prices with immediate effect. The price decline hints at the possibility of a small downward revision in retail petrol prices in India. However, the exact revision could depend a lot on other factors, including the price at which the existing inventories were sourced. The government on Tuesday said the quantum of the next price revision needed in petrol, in line with global crude oil price movements, would be known only on July 15 and that the modalities of price revision by the three state-run retailers would be decided soon.
?Oil marketing companies have been consulting among themselves (on the modalities), and now, discussions would be held at the ministry level. Very shortly, modalities like the frequency of price changes will be announced,? petroleum secretary S Sundareshan said on the sidelines of a function here.
Deregulation of the price of petrol last month had led to an increase of Rs 3.5 a litre in Delhi. Although the government decided in principle to deregulate diesel as well, the immediate price rise was restricted at Rs 2 a litre. The price of kerosene was raised by Rs 3 a litre and that of domestic LPG by Rs 35 a cylinder.