Retailers prepare plan to slash prices

In respite to consumers, state-run fuel retailers may cut petrol and diesel rates ahead of crucial assembly elections with India’s average crude import price dropping by 5% in a week and international oil prices likely to soften on account of an increase in crude supply by the oil producers’ cartel, four people aware of the matter said. Notwithstanding the outcome of the cartel’s meetings on raising output, prices of petrol and diesel need to be brought down, with the Centre, states and public sector oil marketing companies (OMCS) equitably sharing the revenue implications, they added. Two of the people said OMCS have already built a cushion of ₹2-3 per litre even as international prices have fallen after reaching a 13-month peak on February 24. But the move will also require governments to play a part. Discussions have been happening between the Centre, the oil companies and some states.