First petrol price cut in nearly three years, will it last?
A few days back an important UPA alliance Trinamool Congress was opposing the latest petrol price hike and was demanding its roll back. Prime Minister Manmohan Singh made it clear that government is not going to roll back the hike. What's going on and will there be another inevitable hike?
WHAT can be the reason behind the first cut in petrol price since January 2009 - compulsions of the ruling Congress party or the crude prices down in the international market? Meanwhile, customers are feeling some respite from the continuous hike in petrol price, and are hoping that the Congress-led UPA government will not raise it again.
Last time in January 2009, the then Petroleum Minister Murali Deora had slashed petrol price by Rs. 5. In 2011 petrol price raised by Rs.4.17 per litre on May 15; Rs. 2.62 per litre on September 16 and Rs.1.50 per litre on November 4.
Indian Oil Corporation Limited said in a press statement that at current prices, there will be an over-recovery of Rs.1.85 per litre. It has, therefore, been decided to revise the minimum support price downward by Rs.1.85.
In India, petrol price directly depends on the crude oil price listed in the New York Mercantile Exchange (NYMEX). The price of crude oil on stock exchanges has fluctuated widely according to certain political and economic events. This year in May, crude oil reached $114.83, the highest since September 2008. However, in every quarter of 2011, crude oil price shown up and down. On Tuesday, November 15, Crude oil prices climbed above $99 per barrel.
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