Price cuts don't make economic sense

International energy prices have been on a roller-coaster ride the past few months. The price of India’s crude oil basket has fallen by 62% over the past four months, since it touched an all-time high.

While the fall in prices has prompted the government to decrease retail prices of petrol and diesel, the average crude oil price for the current financial year hovers around $102/bbl and the prevailing retail prices are much lower than the corresponding trade parity petroleum prices.

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