Petrol price reduction - May 2013

In May 2012, the petrol price was about INR 77.00 Per litre and Diesel was about INR 44.00 per litre at Chennai , a whopping difference  of about INR 30. In fact, I heard petrol car manufacturing was almost stopped due to slump in demand around same time and many were focused on buying diesel car, in spite of paying higher upfront cost of more than INR 1,00,000, even though their car usage was low.

Last year May 2012, had made some basic calculation comparing year 2008 price peak barrel price of oil, exchange rate against market petrol price and posted about the about the increased price of petrol. My observation was based on the  chart below in May 2012 (i.e INR 77 /litre) is higher or overpriced by about  INR 13 then.

A year later now, there is not much change in situation, barrel price is around USD 100 and USD exchange rate is almost same. However, the petrol price at Chennai is now dropped to INR 65 and diesel per litre is in range of INR 50, with a difference of only INR 15. This should bring some cheer to petrol car users and it could well mean, my earlier calculation on petrol (overpriced) right???!!! :-)