Sunday, September 14, 2008

CHEAPER CRUDE OIL

The basket of crude oil that Indian refiners buy fell below $100 per barrel , the latest day for which data are available, nearly five months after it first breached the three-digit mark.This will allow the country’s oil marketing companies to make profits on a third of their petrol sales, for the first time in 13 months.More importantly, the oil ministry is considering a proposal to reduce diesel prices if the crude oil prices fall below $85 per barrel to control the 13-year high inflation with an eye on elections, said two senior officials in the petroleum ministry.Diesel is used largely by the transport sector and high diesel prices have a cascading effect on general price levels as 78 per cent of goods are transported by road.

courtesy:Business Standard

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