The Hindu Business Line : Indian crude basket likely at $91-95

New Delhi, Sept. 15 After touching a high of $142.04 a barrel in July, the Indian crude oil basket has scaled down to two-digit numbers in keeping with the global crude prices. The price at which India buys its crude is expected to be in the range of $91-95 a barrel.

The basket on Friday saw a marginal increase to $95.88 a barrel after touching a seven month low of $95.79 a barrel on the previous day. The basket is expected to ease further following the international trend.

The Indian crude basket comprises Oman-Dubai sour grade crude and Brent dated sweet crude in a 62.3:37.7 ratio. Falling in line with global crude oil prices, the Indian basket has declined about 32.5 per cent a barrel since July, when it touched a record high.

The basket has averaged $101.22 a barrel so far this month, down from the August average of $113.05 a barrel. With the dip in crude oil prices, the under-recovery burden of the public sector oil marketing companies is expected to come down to some extent. The oil companies sell petrol, diesel, LPG and kerosene at a controlled price.

While the revenue loss incurred on sale of petrol stood at Rs 5.21 a litre for the first fortnight of September, down from Rs 6.31 a litre as on September 1, the loss suffered on diesel declined to Rs 11.15 a litre from Rs 13.69 . The under-recoveries suffered on LPG and kerosene stood at Rs 300.56 a cylinder and Rs 30.12 a litre respectively. The oil companies review the retail selling prices of auto fuels on a fortnightly basis and that of cooking fuel on a monthly basis.

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