Throwing a big respite for petrol consumers in India, the oil marketing companies are likely to reduce petrol prices by Rs 4/ litre from July 1 after the recent increase of Rs 7.54 a litre on May 23, the highest so far. Albeit each time one dollar depreciation the oil companies can cut down the petrol price by Rs. 0.34 a litre, every one rupee depreciation will raise the petrol prices by Rs 75-80 paise a litre.
The current crude oil price has slashed to $99 a barrel, but the oil companies will reduce the petrol prices only if crude prices continue to be steady and rupee does not fall any further against dollar.
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