Some news that wouldn’t really give wings to your idea of re-fueling a Diwali rocket with high octane Petrol, but could make those high calorie sweets a tad sweeter. State oil firms plan to cut petrol rates by about Re 1 a litre as the global oil market is witnessing a sluggish phase and prices of Brent crude have dropped more than 20 per cent since June 2014. What about those turbo-charged sparklers powered by diesel? The government, which regulates retail prices of diesel, is also considering cutting diesel prices as retailers are getting over Rs 3 per litre more than the market rate. State-run Oil Corporations are expected to hold a meeting this week to slash petrol prices. But, the decision on diesel price cut would require a Cabinet approval, which is expected after the assembly elections.
A Petrol car might be the best firecracker you could buy this Diwali
In order to de-regulate diesel prices, the government allowed state-run oil marketing firms to raise diesel rates in increments of 50 paise per litre until pump prices aligned with market rate. However, diesel sales are revenue positive since September, but the government has decided to watch the volatility of the international oil market for some more time before taking a final call on deregulation. Historically, demand of petroleum products in Western countries spikes during winters due to a sudden rise in energy demands for heating, which leads to a spurt in fuel prices.