On Wednesday in India Petrol and Diesel prices were cut drastically. According to the price notification issued by public sector companies, the price of petrol became cheaper by Rs 2.69 per liter in the capital Delhi and Rs 2.33 per liter by diesel. The common man got a relief of due to this as now the current Petrol price in Delhi is Rs. 70.29 per liter, while the price of diesel was Rs 63.01 per liter. Similarly, Petrol prices have come down to Rs 73.02 in Chennai, Rs 75.99 in Mumbai and Rs 72.98 in Kolkata. Talking about diesel, Rs 66.48 has been recorded in Chennai, Rs 65.97 in Mumbai and Rs 65.34 in Kolkata. Prices of both petrol and diesel have come down earlier.
What caused this drastic cut at the prices of Petrol and Diesel?
The international market, crude oil prices have fallen to record levels. At the same time, the increase in crude oil production by Saudi Arabia has also affected the prices. Earlier on March 9, petrol became cheaper by 30 paise per liter and diesel 25 paise per liter. The international fuel prices have been trending down since February 27. Since then, petrol prices have come down by Rs 1.42 per liter and diesel by Rs 1.44 per liter. On Monday after a price war (a price war) between Saudi Arabia and Russia broke out the Crude oil broke up 31% in the international futures market. This is the biggest drop in the 1991 Gulf War crude oil prices.
Why the price of crude oil is going down?
Crude oil prices are seeing a tremendous decline. Earlier on Monday, crude oil futures fell by around 30 percent. Just before this, OPEC Plus’s ongoing talks on oil production have failed. Saudi Arabia has drastically cut oil prices and has decided to increase production from next month.
How this fall in the prices will help India in restoring the economy?
The drop in prices will benefit India financially as the country depends on imports to a large extent for petroleum fuel. India imports more than 84% of its oil requirement. The reduction in international crude oil prices will reduce the country’s import bill and will also reduce retail prices. However, this will worsen the condition of a company like ONGC which is already under pressure. However, due to the lower costs for various sectors, the country’s economy will get some support. This will reduce the cost of raw materials in many areas. This can benefit India financially as the country depends on imports to a large extent for petroleum fuel.