The fall in crude oil prices — by 48% since April 1, 2019, and by 31% on Monday alone — have once again highlighted the opacity of retail fuel prices in India.
According to HT’s analysis, retail prices of petrol and diesel should be ideally cheaper by Rs5 per litre and Rs8 per litre respectively, after factoring in the rupee-dollar exchange rate, central and state levies, and dealer margins.
The cost of India’s crude oil purchase price [Indian basket] on March 10 slumped to Rs2,552.56 a barrel, a level close to what it was on December 16, 2015, when petrol was being sold at Rs59.98 a litre and diesel at Rs46.09 a litre, according to the oil ministry’s data-keeper Petroleum Planning and Analysis Cell (PPAC). The cost of Indian basket crude was Rs2,603.80 per barrel on December 16 about four years ago.
