New Delhi: Following the sharp decrease in the global crude oil prices, it is expected that petrol and diesel might get cheaper. The crude oil prices have come down by nearly $7 per barrel in nine days.
After the marginal price cut in Petrol and Diesel prices by 6 paise and 12 paise per litre respectively on Thursday, it is expected that there will be much sharp cut in coming future. As of now, the Petrol and Diesel in Delhi cost Rs 76.78 and Rs 68.35 per litre respectively. The state oil companies fix the prices of petrol and diesel on the basis of international fuel prices, the exchange rates and taxes.
Notably, the oil companies are free to pass on the hikes and reductions to the consumers on the daily basis but now they wait for the directions from the government to do the same. This is the reason why every time decrease or increase in local fuel prices doesn’t match the international trend.
Decrease in Prices to Relief Government too
Interestingly, with fuel prices going down not only the common man will be relieved but the Government as well. The Government has been facing public anger over increase in the fuel prices and there has been constant demand from across the industry to cut down the excise duty to bring the fuel prices down further.
Decrease in international crude oil prices was recorded on Thursday along with Brent reaching $72 per barrel mark. The global rates have decreased on the backdrop of increased supply from Oil Producing countries and a fear of trade war between the US and China. The fear of trade war between US and China has hurt the demand for oil.
Notably, there was a worry that a major share of supplies from the Islamic Republic would go off the market but since the US has probably agreed to give waivers to India and some other key importers of Iranian oil has lessened the worry. It is expected that the key producers of oil like Saudi Arabia, Russia, the US and others will increase the output to meet the demand as well as shortage due to Iranian supply cut.