Oil firms likely to cut petrol prices by Rs 2 per litre today

State-run oil marketing companies may cut petrol prices by up to Rs 2 per litre at their scheduled review meeting today with the rates of crude declining in the international market.

State-run oil marketing firms Indian Oil Corporation ( IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) are all trading in the green as they will meet today to decide on the quantum of reduction in petrol prices. While BPCL is down over 3 percent, IOC is down 1.6 percent and HPCL is trading 1.75 percent lower.

[caption id=“attachment_344548” align=“alignleft” width=“380” caption=“Reuters”]  [/caption]

This will be the second price cut as OMCs first hiked petrol prices by a steep Rs.7.54 a litre. This hike was the steepest ever and on June 3, oil companies announced a Rs 2 cut in prices. Crude prices have since fallen to $96 per barrel.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

State-run oil marketing companies may cut petrol prices by up to Rs 2 per litre at their scheduled review meeting today with the rates of crude declining in the international market.

State-run oil marketing firms Indian Oil Corporation ( IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) will meet today to decide on the quantum of reduction in petrol prices.

This will be the second price cut as OMCs first hiked petrol prices by a steep Rs.7.54 a litre. This hike was the steepest ever and on June 3, oil companies announced a Rs 2 cut in prices. Crude prices have since fallen to $96 per barrel.

The average global oil prices were around $124 per barrel, when the increase was announced. Apart from the international oil prices, a sharp fall in the rupee against the dollar, making the oil import costlier, was another reason to increase the petrol prices.

Interestingly, the likely petrol price cut, if it happens, is not coming after a sharp appreciation of the rupee either. On Monday, the rupee closed at 55.73 against the dollar.

Clearly, the government’s attempt is to offset a price increase by a price cut, at a time when analysts and investors are prodding the government for bolder steps to contain ever widening fiscal and current account deficits.