Ever since the new government has been elected unanimously, there has been plenty of good news. The main attraction has been a regular decline in petrol prices along with inflation too going down steadily. A rupee reduction is expected to occur prior to the festive season in India.
The slash in petrol prices is due to crude oil from Iran getting cheaper. The crude oil prices had reached an all time high back in June, 2014. Since, then the prices has steadily declined by over 20 percent in the past months.
The State-run oil companies are also expected to cut diesel prices down by Rs 3. This is only possible after a Cabinet meeting, which is scheduled to be held in the coming week. Currently oil companies are earning Rs 3 excess per litre sold, compared to international market rates.
The fuel prices are not expected to be changed prior to Lok Sabha elections, which are scheduled for Mumbai and Haryana on 15th October, 2014. The changes are expected to be implemented prior to the festive season of Diwali in India.
The Government had earlier decided to deregulate diesel prices. Most oil companies have been increasing diesel prices steadily at 50 paise every month. This move was made in order that people are not hugely affected by the price rise.
The diesel prices have not come down as officials are waiting to analyse the markets further. It has been noticed that the consumption of fuels increases in international markets, which could increase the fuel prices. A decision will soon be taken and will benefit every automobile owner.