New Delhi: Indian consumers bearing the continuous escalation of petrol and diesel prices over the last two years can heave a sigh of relief as the petroleum prices are likely to come down, come August 15.

The oil companies could reduce the prices of petrol as the crude prices have witnessed a dip in the global market, courtesy economic crisis in US.
It will be for the first time after two and a half years that government will trim the price of petrol.

Even Finance Minister Pranab Mukherjee and Petroleum Minister Jaipal Reddy on Tuesday indicated the possibilities of reduction in price of petrol, diesel, LPG cylinders and Kerosene.

However, the sources said only petrol prices are likely to be cut down. Since crude oil has not come down to a level where diesel, LPG gas and Kersone prices can be ripped, government and oil companies are working on petrol price only.

On Tuesday, the crude oil prices came down to USD 100 per barrel. Within nine days, the crude oil plunged from 113 to 99 dollars per barrel.
Oil companies are independent to decide the cost of petrol and they review the prices every fortnight. In June 2011 when petrol price were raised, the cost of crude oil in international market was USD 111 per barrel.

Once gain oil companies will review the cost price of oil on August 15. Interestingly, increase or decrease of even single dollar in crude oil affects the oil companies. It alters the cost by 40 paise.

Considering the decline in crude oil prices, the oil companies could reduce the price of petrol by Rs 4 per litre.
However, the oil companies are unlikely to reduce the rates by that margin as they have to recover their losses. Oil companies are bearing loss of Rs 6.06 per litre on diesel, Rs 247 per LPG cylinder and Rs 23.74 per litre on Kerosene.