The effective crude oil price paid by India fell again to record of several years to just $33.35 for the second half of December, petroleum ministry said, implying a petrol price of $1.08 to the gallon or Rs 18.95 per liter.
In India, the retail price of petrol is around Rs 63 per liter.
Crude oil prices continue to fall and had been at $39.02 for the two weeks ended Dec 11. There are 159 liters in an oil barrel, and a price of $33 implies a rate of 20.75 cents (Rs 13.78) per liter of crude. Including refining expenses, that corresponds to a petrol price of Rs 18.95 per liter.
In rupee terms, the fall in the price of crude oil came to 15% in just two weeks.
Indian consumers are, however, not getting the benefit as the government has regularly increased the tax rates when crude prices fell.
Crude prices began falling around the middle of 2014, when they were at around $105 per barrel. After falling continuously for six months, they recovered during the first half of this year.
However, following a long-term pattern, they have again continued to slide in the second half, hitting the current rock bottom.
In the international markets, crude oil has already recovered slightly to $37 per barrel, which will reflect in India’s purchase basket for the two weeks starting 29 December.
