June 5, 2012.Brent crude oil prices dipped below $96 a barrel, plunging to the lowest in 18 months. Petrol prices in India are higher than what was prevailing when crude oil last touched this level, even after accounting for the depreciation of the rupee. State oil companies aim to price transport fuel at a level roughly equivalent to the landed cost of notional imports. This target price is about $19 more than the cost of Brent crude in the case of petrol. Globally, petrol's premium to Brent, dropped to $10.14 a barrel in June, according to agency reports. For diesel, the global benchmark of refining profitability, called "gasoil crack" is below $15. In India, state oil marketing firms seek a much higher target price for petrol. The story is different for diesel, where current retail prices are a fraction below the cost of Brent, and higher than some grades of Middle East crude that they process. For kerosene, the retail price is dramatically lower than the cost of crude oil. Here are the details of the price components of the three liquid fuels, which show that petrol is hugely profitable while the other two liquids are a drag on the finances of state firms.Petrol price: Pranab Mukherjee favours 25 pc cut in states taxesJune 4, 2012. Finance Minister Pranab Mukherjee made out a strong case for a 25 per reduction of taxes levied by states on petrol to bring down its price. He justified the high price of petrol because of the overall international price of crude. He said the states needed to also do their bit on reduction of petrol price. Corruption and price rise were the most important issues during the discussion at the Congress Working Committee (CWC). Kerala Pradesh Congress Committee (KPCC) attacked the petroleum companies for raising the petrol prices, especially at a time when Kerala was witnessing a by election, that put the party in trouble. He wanted the government to take back the power to decide oil prices.