Will the government reduce petrol, diesel price?

There was hike in petrol, diesel prices in India in contrast with the rising global crude prices globally. The scenario now has been changed; the crude price in the international market has been reduced drastically to around $60/barrel to $70/barrel from all time high of around $140/barrel. There were speculations about oil prices of touching the highest of $200/barrel. In India, the impact of the rise in the global prices was very high; the government had raised the petrol and diesel price.

Experts believe that, there can be a cut in the petrol and diesel prices if the price of crude in the international market would come down to around $65/barrel. Of late, the price of crude has been reducing and soon it can be seen at the cost around $ 65/barrel. If the price will come down in the international market then this will be respite for the major oil companies in India. These companies have been suffering loss due to the huge subsidies provided by the government to the people. These companies will try to adjust their loss from the gained surplus from the fall in the oil prices in the international market.

This can be a favorable time for the UPA government to reduce the petrol and diesel prices. The fact can’t be denied that the slide in the oil prices in international marker is temporary and it may surge in future. The major oil companies in India will try to make the better use of the slide in the oil prices in the international market. Inflation and high prices of oil and diesel are the big concerns for the people and relaxation in any they will welcome it.