A reduction in the prices of petroleum products is expected by the end ofd this week, owing to the drop in global oil prices.

If confirmed, this would mark the third consecutive bi-weekly drop in prices of petroleum products.

Petrol is expected to become cheaper by Rs12  per litre while the price of diesel is also anticipated to decrease by Rs 12 rupees per litre, sources told Express News. 

Meanwhile the price of kerosene oil is also expected to drop by up to Rs8 per litre..

The final price of petrol products, based on the fluctuations in the global market,  is likely to be announced by the the eve of September 15.

Oil settles near three-year low, boosting margins

Oil prices recently hit a near three-year low, improving profitability for fuel marketing companies and potentially leading to lower pump prices.

On Tuesday, Brent crude fell below $70 per barrel for the first time since December 2021 due to concerns over slowing economic growth.

This drop has resulted in improved marketing margins for fuel retailers, especially state-run companies, which control 90% of the market.

However, crude oil prices rose on Thursday by ₹51 to ₹5,709 per barrel in futures trade, driven by strong spot demand. On the Multi Commodity Exchange, October delivery crude oil was up 0.9% at ₹5,709 per barrel with 11,306 lots traded.

Globally, West Texas Intermediate crude rose 1.26% to $68.16 per barrel, while Brent crude climbed 1.32% to $71.54 per barrel in New York.