India’s oil marketing companies today slashed petrol price by Rs 3.77/litre and diesel by Rs 2.91/litre following the fluctuations in crude prices which have been swinging between the push and pull from coordinated output cuts by major producers on one side, and rising US stockpiles on the other.
An official statement said, “The current level of international product prices of Petrol & Diesel and INR-USD exchange rate warrant decrease in selling price of Petrol and Diesel, the impact of which is being passed on to the consumers with this price revision.”
Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp review retail fuel prices periodically and usually revise them every fortnight to pass on the impact of global crude oil prices on their purchases.
OPEC (Organisation of Petroleum Exporting Companies) and other major oil producers of the world in November agreed to trim output to help balance the markets and provide a support to falling prices. OPEC, a group of 13 oil producing nations, decided on November 30 to cut global crude oil output by 1.2 million barrels per day. It was first such agreement between these producers since 2008.
Oil has mostly traded above $50 a barrel since OPEC and 11 other countries started trimming supply in January, recently falling to a three-month low as simultaneous revival in US shale drilling offset the OPEC cuts. The rise in prices was recorded after Saudi Arabia said 80% of the agreed cuts have been achieved since the deal became effective on January 1, before falling again in the most recent trading sessions, as the drilling in the US climbing to highest in a year countered OPEC’s efforts to limit the supply.