The government is thinking about lowering fuel prices because global oil prices have dropped a lot. According to a Business Today report, oil prices are now at their lowest in nine months. This is good news for Oil Marketing Companies (OMCs) because they are making more money. As a result, consumers might see lower fuel prices soon.
Oil prices have fallen to their lowest since January, and this has led to talks among government officials. With elections coming up in Maharashtra and Haryana, the government wants to help people by possibly lowering fuel prices.
Recently, US oil prices fell by more than 1%, dropping below $70 per barrel. Brent crude oil prices also went down to $72.75 per barrel. This drop in prices might make OPEC+ (a group of oil-producing countries) postpone their plans to increase oil production next month. One reason for the lower prices is that Libyan oil is back on the market.
OPEC+ also plans to increase production starting in October, and other countries are producing more oil too, which is pushing prices down. Goldman Sachs predicts oil prices might be between $70 and $85 per barrel soon.
Even if prices stay low for only a short time, if they stabilize around $85 per barrel, the government could ask fuel retailers to keep prices steady. Last March, before the general elections, the government reduced petrol and diesel prices by Rs 2 per litre. A new price cut now would help consumers who are still paying high fuel costs.
