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State run oil companies hint at lowering petrol prices

31 May 2012 Evaluate

A meeting of state run oil companies to review the decision on hike in petrol prices is likely to be held on Thursday. It is expected that the companies may lower petrol prices in the wake of falling international prices of crude oil.

Hindustan Petroleum Corp (HPCL) and Indian Oil Corp have already hinted that they might slash petrol prices between Rs 1.25 and 1.67 excluding taxes. Bharat Petroleum has also hinted at the possibility of lowering petrol prices by about Rs 1.5- 20. All three oil majors are of the opinion that if global prices of crude oil fall they would pass on the benefit to the consumers.

Oil companies review their decisions regarding a hike or lowering of petrol prices on the first and 16th of every month keeping in view the change in international prices as well as foreign exchange rates. The prices of petrol have been raised recently (May 24) by Rs. 7.50 because the international price of crude oil was hovering at $124 per barrel. However this has now come down to $116-117 a barrel fuelling hopes of a slash in prices.

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