The domestic prices of naphtha, fuel oil (FO) and low sulphur heavy stock (LSHS) both for fertiliser and non-fertiliser uses witnessed a downward revision today following a drop in their international prices in the wake of war clouds receding in West Asia.
The marketing committee of the four public sector oil companies, which took stock of the prevailing international prices, brought down naphtha prices for non-fertiliser use by 1.09 per cent, and fuel oil and LSHS prices by 2.5 per cent each.
A similar revision has been affected for the use of these petroleum products by fertiliser manufacturers. For example, in the case of IFFCO, Phulpur, the new prices of naphtha are Rs 14528.90 a tonne, FO Rs 11261.79 a kilolitre, and LSHS Rs 12069.30 a tonnes.
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The international prices of naphtha (Singapore), which were hovering around $ 27.70 a barrel on September 10, touched a high of $ 28.63 a barrel on September 24, dropped to $ 27.25 a barrel yesterday.
Similarly, the international prices of FO (Singapore), which were $ 25.50 a barrel on September 10, and moved on to $ 26.92 a barrel on September 24, came down to $ 24.90 a barrel yesterday.
Industry sources here say that the prices of petroleum products may not come down substantially in the near future with the winter season about to set in in the West thereby increasing the demand of fuel for heating purposes.
Added to this is the concern that the stock position in the US, the biggest consumer of petroleum products in the world and the one that dictates world oil prices, is not very comfortable. This could well push up the demand as well as prices of petroleum products in the international market.