The common man, who has been struggling with rising fuel prices, may soon find relief as crude oil prices in the international market have fallen significantly. This notable drop in crude oil prices raises hopes for a reduction in petrol and diesel prices, with crude oil now at multi-year lows.
Brent Crude Futures Fall Below $70 for the First Time in 3 Years
Brent crude futures dropped below $70 a barrel on Tuesday, marking the first significant decline in oil prices since December 2021, according to an AFP report. The sharp fall is attributed to growing global concerns about slowing economic growth, which is impacting oil prices, AFP reported.
Crude Oil Prices Plunge to Lowest Level in Nearly 3 Years
Crude oil prices saw a sharp decline on Tuesday, with Brent crude futures dropping 3.7 percent to $69.15 a barrel and West Texas Intermediate falling 4.1 percent to $65.90 a barrel. This marks the lowest level for crude oil in nearly three years. Given this significant drop, there is growing anticipation that state-run oil companies may consider reducing retail prices for diesel and petrol. A decrease in fuel prices could provide substantial relief to the common man, especially during the festive season.
Rate Cut Six Months Ago
Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum—India’s three state-owned oil companies—adjust petrol and diesel prices based on international crude oil rates. For nearly six months, retail prices for diesel and petrol have remained unchanged. The last reduction occurred on March 14, 2024, when the price of both fuels was lowered by Rs 2 per liter.
Elections in Several States, Including Maharashtra
In the lead-up to state elections, including those in Maharashtra, there is often a focus on controlling petrol and diesel prices. Fuel prices were reduced in March 2024 ahead of the Lok Sabha elections, and with assembly elections set to be announced in various states, there is hope that similar relief measures might be implemented again. Currently, petrol in Delhi is priced at Rs 94.72 per liter and diesel at Rs 87.62 per liter, while in Mumbai, petrol costs Rs 103.44 and diesel is priced at Rs 89.97 per liter.
Crude Oil Prices Fall Sharply Since Last Week
Global crude oil prices have been on a steady decline, with Brent crude futures dropping nearly 8 percent last week and West Texas Intermediate falling about 6 percent. The downward trend in crude oil prices has continued into this week. Given the current economic conditions, there is a strong likelihood that crude oil prices will decrease further. If this trend persists, there could be a significant reduction in diesel and petrol prices before the Dussehra-Diwali festive period, following the recent Holi celebrations.
SOURCE: Lokmat.com