Petrol and diesel getting cheaper in the international market...
The Modi government announced to increase the prices of petrol and diesel on Monday, 7 april 2025. The central government has increased the price of petrol and diesel by Rs 2. The new rates on petrol and diesel will come into effect from 12 midnight. The biggest thing is that this decision has been taken at a time when crude oil prices around the world have reached the lowest level in three years.
Crude oil became cheaper
Talking about last week, the price of crude oil fell to $ 62 per barrel, which is the lowest rate since august 2021. The reason for this decline is the fear of global economic recession and decrease in demand for oil. On Monday, the price of Brent crude stood at $ 63.23 per barrel, while America's Nymex crude fell 10 percent to $ 62. Also, saudi arabia has reduced the price of its major grade 'Arab Light' for Asia for the second consecutive month. OPEC+ countries have also eased production cuts from this month, which may increase supply in the market.
Questions arising in the country
On one hand, the indian government has increased the price of oil, on the other hand, questions are being raised in the country that when oil has become cheaper in the international market, then why are petrol and diesel prices not decreasing in India. According to the business Line report, congress leader manish tewari had also asked the government whether 'dynamic pricing' is applicable only when prices rise? The general public is also hoping that now the prices of petrol and diesel will come down, but no clear indication has been received from the government yet. On the contrary, the prices of petrol and diesel have been increased even more.
oil companies are making money
The fall in crude oil prices is also affecting the oil companies of India. This could prove beneficial for oil marketing companies (OMCs) like indian oil, hpcl and BPCL, as their auto fuel marketing margin has reached Rs 13 per liter, which is usually between Rs 3.5 to Rs 6.2 per liter. But if the government increases excise duty or reduces retail prices, the profits of these companies may be affected.
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