Petrol and Diesel Price Down: Good news has come for India from the international market. There has been a huge fall in the price of crude oil in the international market. The price of crude oil has come down to below $70 per barrel. This is the first time since December 2023 that such a drop in the price of crude oil has been recorded. That is, the price of crude oil is at its lowest level in 9 months. Due to the fall in crude oil, petrol and diesel prices have fallen in India.
As soon as people got the information about the reduction in the price of petrol and diesel, people started reaching the pumps to fill the oil. Petrol and diesel prices have come down in every city in the country. So what is the delay? Soon, you should go to the petrol pumps and fill your vehicle tank.
WTI Crude oil is trading below $70 per barrel at $69.68 per barrel, while Brent Crude Oil is trading near $73 per barrel. India imports more than 80 percent of its crude oil consumption.
This Is The Reason For The Fall In Crude Oil Prices
These days, the demand for crude oil has decreased due to the ongoing war between Russia, Israel and Palestine. Crude oil prices have fallen amid the war. Demand is expected to decrease, mainly due to China’s economic slowdown.
At the same time, crude oil prices fell drastically due to expectations of starting crude oil exports from Libya. After the ongoing dispute between the opposing governments of Libya, many oil fields and wells were closed. The demand for crude oil is expected to increase only after the appointment of the governor of the Libyan Central Bank.
At the same time, OPEC countries may reconsider the decision to cut crude oil production. Due to all these reasons, the price of crude oil has decreased in the international market due to the possibility of an increase in the supply of crude oil.
The Coffers Of Government Oil Companies Will Increase
Government oil companies are expected to make huge profits due to the big fall in crude oil prices. Because they are getting crude oil at cheap rates, in such a situation, it now depends on them whether they will give this benefit to the consumers or not. Because the oil company itself decides the oil prices. Also, petrol and diesel are out of GST. In such a situation, the entire right is on the oil companies. Companies must decide whether to give consumers benefits; this is a big question.
Last Month, Companies Made Huge Profits On Petrol And Diesel
Last month, in August 2024, government oil companies were making a profit of Rs 9.3 per litre on selling petrol and Rs 7.6 per litre on diesel, which is now expected to increase to Rs 14 and 13 per litre. In such a situation, government oil companies will likely make huge profits between July and September, the second quarter of the current financial year 2024-25.
So There Will Be Relief From Inflation
If this fall in crude oil prices continues for a long time, the pressure on the central government to reduce petrol and diesel prices may increase. The pressure to reduce diesel prices may increase, which may cause freight to become cheaper. Its direct effect will be reduced inflation because most food items are supplied by diesel vehicles.
If diesel prices decrease, food items will become cheaper, and there will be relief from inflation. A high inflation rate remains the biggest obstacle to reducing interest rates. Reducing the prices of petrol and diesel can help deal with inflation. Along with this, the way to reduce interest rates will also be clear.
