The central government had cut the prices of petrol and diesel in March.
The prices of petrol and diesel may reduce slightly in the country. Because, since March till now the prices of crude oil have decreased by 12%. This has increased the margins of oil marketing and refining companies. Due to this, there may be a scope for reduction of 2-3 rupees per liter in the price of petrol and diesel.
This information has been given in the report of rating agency ICRA. The average price of crude oil imported into India has come down to $ 74 per barrel this month. In March their prices were $83-84. During that time, the prices of petrol and diesel were reduced by Rs 2 per liter. Since then their prices have remained stable.
Girish Kumar Kadam, Senior Vice President and Group Head (Corporate Ratings), ICRA, said, 'The income of oil marketing companies from the sale of petrol has increased by Rs 15 per liter and that of diesel by Rs 12 per liter between March-September. In such a situation, if the prices of crude oil remain stable, then the prices of petrol and diesel can be reduced by Rs 2-3 per litre.
Crude prices fell by 12% in 5 months, reached the lowest level in two and a half years
In fact, due to increase in the price of crude oil in the international market, the earnings i.e. Gross Retail Margin (GRM) of oil marketing companies like Indian Oil and Hindustan Petroleum decreases.
But if crude oil becomes cheaper and their marketing gain on petrol and diesel also increases by Rs 1 per liter, then the GRM loss reduces by Rs 75 per barrel. According to Kadam, this is what is happening in the country right now. That is why there are chances of the prices of petrol and diesel coming down.
Policy changes: Consideration of releasing more clear inflation data
The government can include core inflation figures in retail inflation. While measuring core inflation, figures from food items and energy sectors like petrol and diesel are not included in it. On the other hand, the difference in the prices of these two items during the last one year is included in the retail inflation (CPI) data.
Both figures are released separately. Economists have urged the Ministry of Statistics and Program Implementation to merge the two so that more clear inflation data can be released.
Ghee, butter and computers can also become cheaper due to tax cut
West Bengal Finance Minister Chandrima Bhattacharya said on Thursday that the Group of Ministers formed on rationalizing GST rates has discussed the tax on more than 100 items. This includes a proposal to reduce GST on some products from 12% to 5%.
This will be discussed in the next meeting of the Group of Ministers on October 20. Currently, 12% tax is levied on products like ghee-butter, computers and juice. In the next meeting of the Group of Ministers, the proposal to reduce taxes on essential medicines, medical equipment, bicycles and bottled water will also be discussed.
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