Domestic crude oil basket falls to $56.28

The price of India's crude oil basket fell by $1.63 per barrel to $56.28 a barrel Monday, the petroleum and natural gas ministry said today.

The price of India's crude basket currently is over 25 per cent lower than the all-time high of $75.30 a barrel on August 8. It is also the lowest in more than three months.

The average price for September so far is $61.61 barrel compared with the August average of $70.84.

The recent softening of crude prices has provided some relief to India's oil marketing companies that had been reeling under heavy revenue losses.

The government did not allow these firms to hike retail rates even though the average monthly price of the Indian basket was above $70 a barrel in July and August.

The last price hike was in June when petrol price was raised by Rs 4 a litre, and that of diesel by Rs 2. Government had said it would review retail prices of petroleum products September 1, but did not do so.

For every $1 rise in crude oil price, India's retail price per litre of petrol has to be increased by 39 paise, diesel by 30 paise, kerosene by 36 paise, and cooking gas by 67 paise.

The Indian crude basket comprises Oman-Dubai sour grade crude and Brent dated sweet crude in 58:42 ratio.