New Delhi: The cost of filling up your petrol tank looks set to start increasing as early as next week. But this hike will only be minor if the ongoing dramatic fall in crude oil prices continues, reported officials from the Petroleum Ministry.

The price of crude oil dropped dramatically after Laden’s killing and in actual dollars was one of the biggest one-day dives in history sending US crude back under USD 100 a barrel.  It has been above the USD 100 mark since March.

But for vehicle owners in India to heave a sigh of relief in terms of petrol price hike, this dive has to go on and slide to USD 90 per barrel. Only then the prices of petrol and diesel will see a minimum hike, reported the officials.

The tumbling trend of the price of crude oil during the last fortnight capped a major decline this week.

With the 10 percent fall in crude oil price in US market the rate of crude came down to 100 dollars per barrel on last Friday. London Brent crude also went down to 110 dollars per barrel.

It is seen that one one dollar hike in crude price results in a push of 40 paisa per litre in petrol prices and 30 paisa per litre in diesel prices in the Indian market. Thus, the loss faced by oil companies on the sale of petroleum products has significantly decreased.

The price of diesel had not been increased since June 2010 while the last hike in the rate of petrol price happened in January 2011.

The rate of crude oil in 2010 was USD 70 per barrel which rose to USD 95 a barrel in January 2011.
To revise the prices of petroleum products in the country, a meeting of Empowered Group of Ministers (EGoM) has been scheduled for May 11, 2011.

According to sources, government is reluctant to increase the price of diesel as it has a significant impact on the rising inflation which is at 8 percent.

JPN/Bureau