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Petrol, diesel to cost less from Nov 16: Naik

State-run oil companies will pass on the fall in international crude oil prices to domestic consumers by reducing petrol and diesel prices this week, Petroleum Minister Ram Naik said on Thursday.

"I am happy that international (crude) prices have fallen. If the trend continues, on November 16 oil companies would revise petrol and diesel prices downward," Naik told reporters in New Delhi.

The Indian basket of crude oil has averaged $23.72 a barrel this month as against the average of $26.65 per barrel cost in the second half of October.

"Fall in prices will be good news for consumers," he said but did not indicate the likely reduction.

As per the mechanism evolved after dismantling of Administered Pricing Mechanism this fiscal, oil companies are to fix consumer retail price for petrol and diesel on the first and 16th of every month based on the average procurement cost of crude during the fortnight.

Benchmark brent crude has fallen from $27.31 a barrel in the second fortnight of October to $24.21 a barrel this month.

State-run oil companies, which maintained the price line last fortnight with steady trend in international markets, had raised petrol and diesel prices by upto Rs 1.50 per litre each since September.

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