In what may come as a new year gift for motorists in India, the prices of petrol and diesel could soon be cut down by upto Rs 6. While, there has been no formal confirmation, reports expect an announcement by the government soon.
The global price of crude has been coming down and the government is likely to take advantage of the situation and pass on the benefits to the consumer.
The price of petrol and diesel in New Delhi is Rs 106.03 and Rs 92.76 per litre respectively. Similarly, in Mumbai the price is Rs 111.35 and Rs 97.28 per litre.
The softening of global crude prices has been due to the weaker economy along with US building up higher inventory, which has slowed down demand. China, which accounts amongst one of the highest energy consumer is also witnessing an economic slowdown.
In an optimistic scenario the crude price per barrel is expected to come down to $60 (Rs 4,998) and on the higher side up to $90 (Rs 7,498).
Then there is the bonanza of the upcoming general elections, that may further pursue government of India to improve consumer sentiments by passing on the cut down on the fuel price.
The retail price of petrol and diesel in India has somewhat remained stable, albeit on the upper side.
