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Petrol, Diesel Prices Likely To Go Down Further as India Set To Release 5 Million Barrels Crude Oil

India plans to release around 5 million barrels of crude oil from its emergency stockpile in partnership with the US, Japan and other major countries to resolve the petrol and diesel prices hike, a top government official said on Tuesday.

India has a reserve of about 38 million barrels of underground crude oil in caverns at 3 locations on the east and west coast. The official stated that the 5 million barrels will be released in 7 to 10 days. The official wished to stay anonymous while giving the information.

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The emergency stockpile will be sold to MRPL (Mangalore Refinery and Petrochemicals) and HPCL (Hindustan Petroleum Corp LTD) that are connected by pipeline to the strategic reserves. The official also added that more reserves may be released later after this release. A formal announcement is awaited.

The prices of petrol and diesel had skyrocketed after the COVID 19 lockdown was lifted and people were devastated paying such a high price for the same. Recently the central government of India made a special announcement to cut down the excise duty on petrol that bought down the price of petrol and diesel by Rs 5 and Rs 10 respectively. Many states in India cut down the VAT which further bought down the cost of the 2 fossil fuels.

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The petrol and diesel price hike has been a headache for the common man and this has further affected prices of many other things like fruits, vegetables, cab fares etc. With the prices going down, we can expect prices of other things to go down as well.

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