After the US imposed tariff bombs, China retaliated on Friday, imposing a 34 percent duty on imports from the US, increasing the apprehension that the trade war will increase further, leading to a slowdown in the global economy.
Such possibility is expected to reduce oil demand and on the same day the oil producing organization OPEC announced a higher increase in oil production from May, causing crude oil prices to fall to the lowest level of over 3 percent to the lowest level of 2021. This has created a favorable situation to reduce the prices of petrol and diesel in India, but for this it is necessary to allow government oil marketing companies to reduce prices in this way. It is also a fact that the central government is not in favor of reducing prices, as the country gets a large amount of tax revenue from fuel sales. On Friday, the benchmark Brent crude oil fell at $ 5.6 or 7.9 percent to $ 64.6 per barrel. Earlier, Brent crude also touched the $ 64.2 $ minimum level. American WTI crude also fell at $ 5.9 or 8.8 percent to $ 61 per barrel. This price is the lowest level in the last four years after June 2021.
For the general public of India, who is currently facing inflation, this huge fall in crude oil prices has created a golden opportunity to get some relief in petrol and diesel prices. In fact, since April 2024, there is a fall in crude oil prices, although last time petrol and diesel prices were increased by Rs 2 per liter. The rate of Rs 10 per liter was fixed on 14 March 2024 before the Lok Sabha elections. After the second cut, that is, in the last twelve months, these prices have not been reduced even once. Earlier, on 22 May 2022, the Central Government had cut excise duty, causing a decrease in fuel prices. Thus, fuel prices have been reduced only twice in the last three years. It is not that crude oil prices have suddenly fallen. In April 2024, crude oil prices were around $ 82 per barrel, after which these prices are declining, except for a slight increase in June and September. Even in September, these prices rose after reaching $ 71. Thus it can be said that the current price has decreased by $ 18 per barrel as compared to April 2024. Although a decrease of $ 10 has been recorded for a long time, the government is not reducing the prices of petrol and diesel. Some time ago, when Union Oil Minister Hardeep Singh Puri was asked when the prices of petrol and diesel will be low, he had given a very clever reply saying that there is a reasonable expectation to reduce fuel prices, but when the price of crude oil prices continues, petrol and diesel prices are expected to be reduced.
Oil marketing companies will decide on this. Now since the recent decline is unlikely to increase a major increase in the near future, it is the demand of the hour for oil marketing companies that they decrease this type.
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