As the Global crude oil prices are falling down, the Indian Government is planning to revise fuel prices in the country.
The government is set to reduce fuel prices by early November and that also only if the global fuel prices remain low after an expected production cut announcement from the Organization of Petroleum Exporting Countries (OPEC).
The cartel that controls nearly about 405 of the total oil production has hinted on cutting down the production to support the price segment which has fallen to about 50% in last three months.
Petroleum Minister Murli Deora said that oil prices in India has fallen to a break-even point but the increasing dollar value is blocking the way. Dollar value goes up to about 25% which is eventually holding the government to cut down the fuel prices.
Indian petroleum refiners like Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation buy crude oil in dollars and if dollar value increases against Indian rupee, then these companies have to pay higher amount for the same amount of oil.
However, officials, government and even the petroleum refiners are all waiting for the OPEC’s decision.