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OMCs may reduce fuel prices if crude stays low: Petroleum Secy
State-run oil marketing companies (OMCs) may consider lowering petrol and diesel prices if international crude oil prices remain subdued for an extended period, said Pankaj Jain, secretary at the ministry of petroleum and natural gas. His statement comes as Brent crude has traded below $75 per barrel for over a week.
“OMCs will consider a cut in retail prices if international prices of crude oil remain subdued for a longer duration,” Jain told reporters at the sidelines of the International Conference on Green Hydrogen. He added that the state-run companies, along with the government, would monitor price trends over time before making a decision.
Earlier this month, global oil prices reached three-year lows due to demand concerns. Currently, Brent crude for November contracts on the Intercontinental Exchange is trading at $71.81 per barrel, up 1.7% from the previous close. This drop in oil prices is expected to improve the profitability of OMCs, which could pass on the benefit to consumers through price cuts. India imports 85% of its energy requirements, making international oil prices a key factor in domestic fuel pricing.
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