PIB News Update: Union Minister of Petroleum & Natural Gas Shri Dharmendra Pradhan has informed that Taking advantage of the low crude oil prices in international market, India purchased 16.71 million barrels (mbbl) of crude in April – May, 2020 and filled all the three Strategic Petroleum Reserves created at Vishakhapatnam, Mangalore and Padur. The average cost of procurement of crude oil was US $ 19 per bbl as compared to US $ 60 per bbl prevailing during January2020, thus resulting in saving of US $ 685.11 million, which amounts to Rs. 5069 crores (at 1US $= Rs.74).
Prices of petrol and diesel have been made market-determined by the Government with effect from 26.06.2010 and 19.10.2014 respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with international product prices and other market conditions. Oil Marketing Companies take a decision on retail selling price after considering various aspects including international product prices, exchange rate, tax structure, inland freight and other cost elements.
Petrol and Diesel prices are market-determined and increase or decrease according to market trends. The weightage of petrol and diesel in the Wholesale Price Index (WPI) is 1.60% and 3.10% respectively.