Gasoline prices fall, Reilly

Gasoline prices are likely to fall across the country ahead of Diwali, as crude oil prices hit a new low in four years.It expects that the national oil company may reduce gasoline prices to about 1 per liter.Diesel prices are also expected to decrease following the October 15 National Assembly polls, according to media reports.

The more than 20-cent drop in Brent crude oil prices since June has drawn interest in price cuts.According to industry sources, state-run Indian Oil Corporation (IOC), BPCL and HPCL are expected to meet this week to cut petrol prices, but the final decision to cut diesel prices will be subject to cabinet approval.For the time being, the Oil Ministry is awaiting a decision from the higher authorities before referring the matter to the Cabinet.

Last week's slip on crude oil prices, the International Monetary Fund said, "Oil prices can go either way depending on geopolitical developments. Oil production disruptions due to compensating for geopolitical tensions, especially in Iraq, Libya and Yemen. The risks are related. If they materialize, the activities of these countries could contract under this disruption. This disruption could also lead to higher oil prices and lower global growth.”

India imports about a billion barrels in a year, so if crude oil prices average $106 a barrel, and $100 a barrel, the country's import bill will drop to $10 billion (~Rs 61,000 CRORE).

Saudi Arabia "quietly told oil market participants" that lower oil prices "extended" the comfort of lower oil prices, Reuters reported on Monday.