NEW DELHI: Diesel and petrol may become cheaper. Diesel prices are set to fall by 11 percent in two weeks and quickly touch Rs 2.50 percent per liter as consumers cheer ahead of the state assembly and Jammu and Kashmir assembly elections, government and industry sources said.

This is the sixth consecutive price cut in petrol since August last year and the first since the government deregulated fuel. On October 18, the Cabinet allowed the state-owned oil companies to match the retail price of diesel with the market price and announced a price cut of Rs 3.37 per liter. The previous UPA government eased petrol price control in June.

The plan to reduce the cost of fuel for future cars will bring down petrol prices to 16 Diesel prices have come down to affordable levels at the lowest level in a month. It also existed a year ago. The price drop was caused by a sharp fall in international oil prices. The price of Brent crude fell from $115 a barrel in the month of June to a four-year low of $82.60 two weeks ago. On Wednesday, it traded at $877 a barrel.

According to international oil price data, the company’s profit on gasoline and diesel for the current price cycle is around $7 to $8 a barrel compared to the past two weeks and last month. According to sources, the rupee has remained almost unchanged against the dollar. However, he said, “The exact figure will not be known until the remaining three days after the weekend.”

This could lead to changes in average and retail prices. According to sources, based on international oil price data, the company’s profit on gasoline and diesel for the current pricing cycle is around $7-8 per barrel compared to the last two weeks, with little change in the rupee-dollar exchange rate. An industry source said, “However, the exact figures will not be known until the remaining three days of the weekend, so the average price and oil prices could also change.”

Executives of the state-run oil marketing company will meet executives of all oil companies on a regular basis as the government will theoretically no longer fix retail prices for gasoline and diesel. The next price review is expected to take place on Friday or Saturday and the exact amount will be determined after the oil ministry acquiesces.

The election code of conduct is expected to be decided on Friday or Saturday, according to government sources. The price cut does not apply to diesel and gasoline. This is because the prices of these two fuels are determined by the industry based on the fluctuations in the international oil market.

The government will direct the NOC to maintain a substantial buffer on diesel prices, at least until a reduction in fuel prices is announced, sources said. The buffer is expected to be around Rs 1 liter per liter, which will help maintain the retail price of diesel. Diesel prices have spiked in the last two weeks due to turmoil in international markets. November.

The NDA government does not want fuel prices to go up during the state elections that begin on November 25 in the day.

Despite the diesel price cut on October 18, the government maintained a buffer price of 56 paisa per liter to protect consumers from sudden price hikes in the volatile international market. The government decided to relax diesel regulations after every company started charging Rs 3.56 per liter price which was too high.