NEW DELHI: Union Petroleum Minister Hardeep Singh Puri has said that the prices of petrol and diesel can be reduced if the global crude oil market stabilises in the coming months. This has shown the possibility of petrol and diesel falling by up to Rs 2 before the Bihar assembly elections.

The easing of political tensions in the West Asia and the increase in OPEC oil production are expected to lead to a decline in crude oil prices in the global market. This will reduce the production costs of public sector oil companies, which is a favourable situation for reducing fuel prices.

As the Indian economy is going through severe challenges, industry associations are demanding that fuel prices be reduced to provide relief to consumers.

Small consumers in the country have to pay high prices for petrol and diesel, even as oil companies profit from cheap crude oil from Russia. Currently, the country's leading refineries are using discounted Russian crude oil to produce fuel.