There is a game in crude oil, petrol may become cheaper by Rs 10 in the new year

There has been a decline in crude oil prices for the fourth consecutive day. In the initial trading days of December, the price of oil from Gulf countries i.e. Brent crude oil has decreased by about 7 percent. On the other hand, American crude oil, also known as WTI, has fallen by 5 percent. According to experts, by the end of December, crude oil from Gulf countries may reach up to $70. The main reason for which is the decline in demand.

If this happens then the price of petrol and diesel in India may start reducing in the new year. Which can be seen up to Rs 10 per litre. Yes, government officials have already indicated that if the price of crude oil remains below 80 dollars then the price of petrol and diesel can be reduced. On the other hand, American oil inventories have also increased. Due to the strength in the dollar index, there has been a decline in Gulf and American oil prices.

On May 21, 2022, the country’s Finance Minister Nirmala Sitharaman herself had reduced the tax on petrol and diesel. After which a decline in fuel prices was seen. There has been no change in the prices of petrol and diesel since then. Whereas there has been a continuous decline in the price of crude oil. On the other hand, the losses suffered by petroleum companies during the Ukraine War have also been compensated. All government petroleum companies are in profit. In such a situation, the government and petroleum companies can provide relief to the common people by reducing fuel prices in the month of January. Due to which inflation will reduce in the country and common people will get relief in EMI from RBI.

Fall in crude oil price

Due to the strong US dollar and low demand, oil prices in the international market fell to their lowest level in almost five months on Tuesday. Craig Erlam, senior market analyst at data and analytics firm OANDA, said that the OPEC Plus deal has provided little support to prices. After that there has been a decline for four consecutive days. The oil of Gulf countries i.e. Brent crude oil fell by 83 cents or 1.1 percent and closed at $ 77.20 per barrel. American oil i.e. US West Texas Intermediate Crude (WTI) fell 72 cents or 1 percent to close at $ 72.32. This was the lowest close for both crude benchmarks since July 6. For WTI, it was the first time since May that prices fell for four consecutive days.

The special thing is that in the month of December, oil of Gulf countries has become cheaper by about 7 percent. On November 30, the price of Brent crude oil was around $ 83 per barrel. Which has come to 77 dollars per barrel. This means that oil from Gulf countries has become cheaper by about $6 per barrel during this period. On the other hand, a 5 percent decline has been seen in the price of American oil. On November 30, the price of American oil was around $76 per barrel, which has come down to around $72 per barrel. This means that during this period the price of American oil has fallen by more than $3 per barrel.

Petrol will become cheaper by Rs 10?

Experts estimate that there is no specific trigger for increase in the price of crude oil in the coming days. By the end of December, there will be a further decline in the prices of oil from Gulf countries which India uses the most. By the end of December, the price of this oil may reach the level of $ 70 per barrel. After which we may see a decline in the prices of petrol and diesel in India in the new year. According to experts, the possible reduction starting in January could even go up to Rs 10. Anuj Gupta, Head of Commodity Currency, HDFC Securities, said that the main reason for the fall in crude oil prices is lack of demand. There is no such trigger to be seen. Due to which the prices increase. The decline is likely to continue. Petroleum companies may consider reducing the prices of petrol and diesel in the new year.

Petrol and diesel price in India

On the other hand, there has been no change in the prices of petrol and diesel in India. The last change in the prices of petrol and diesel in the metropolitan cities of the country was seen on May 21. At that time, the country’s Finance Minister Nirmala Sitharaman had reduced the tax on the price of petrol and diesel. After that some states tried to influence prices by reducing or increasing VAT. The interesting thing is that ever since the prices of petrol and diesel started changing daily in the country as per the international market, this is the first time that petroleum companies have not made any changes during the record timeline.