Indian crude oil basket falls to four-month lows

India is now paying $39.90 per barrel of crude oil, lowest since April 2016, the Government data showed.

According to Ministry of Petroleum & Natural Gas, “The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 39.90 per barrel (bbl) on 29.07.2016. This was lower than the price of US$ 40.81 per bbl on previous publishing day of 28.07.2016.”

In rupee terms, the price of Indian Basket decreased to Rs. 2674.73 per bbl on 29.07.2016 as compared to Rs. 2736.78 per bbl on 28.07.2016. Rupee closed stronger at Rs. 67.03 per US$ on 29.07.2016 as against Rs.67.06 per US$ on 28.07.2016. 

This is just 2 cents higher than the lowest price for crude oil that India has paid in the current fiscal year.

According to PPAC, the average price per barrel for crude oil in April was $39.88, $45.01 and $46.96 per barrel in May and June, respectively.

Naturally, oil prices in India have seen a sharp decline over the past two months.

On July 31, 2016, oil marketing companies cut petrol prices by Rs 1.42 per litre and Rs 2.01 per litre for diesel.

This was the third reduction in prices in July alone.

Petrol price was last cut by Rs 2.25 a litre on July 16. Diesel rate on that date was reduced by Rs 0.42 a litre. Prior to that petrol price was cut by 89 paise a litre and diesel by 49 paise on July 1, PTI reported.

However, most of this fall in oil prices haven’t translated into savings for consumers in India as the Government has notched up excise duty.

The price paid by oil marketing companies to refiners came at Rs 21.63 per litre and the price OMCs charged petrol pump dealers, excluding VAT and excise duty, was Rs 24.36.