You Might Expect Fuel Price to Drop as Global Crude Tumbled
The economists have reported that it is expected that the price of petrol and diesel might get down sharply after global crude oil prices tumbled nearly $7 a barrel in nine days. Last week, it was seen that the price of petrol and diesel were cheaper by 6 paise and 12 paise a litre, respectively. The cut is expected to get deeper. In Delhi, petrol and diesel were available for Rs 76.78 and Rs 68.35 per litre, respectively. In Mumbai, petrol was Rs 84.22 and diesel Rs 72.56.
The domestic rates of petrol and Diesel are decided by state oil firms based on international fuel prices, the exchange rate and taxes. The state oil firms has the authorities to pass on all hikes and reductions daily to consumers, but have lately begun to wait for signals from the government to do so. This is the reason, why local prices do not always mimic international trends.
The ruling party of Modi Government will get the relief when the prices of fuel will be lowered. Ever since the price of fuel went up, the party has faced public anger.
In last few days, the international crude oil prices have declined sharply with Brent going close to $72 a barrel on Thursday.
The prospect of increased supply from key producing countries and a fear of trade war between the US and China hurting oil demand have been weighing on the global rates.