New Delhi: India could witness further fall in the price of Petrol and Diesel in following week, due to decline in Crude Oil prices in International market.
It is to be mentioned that the change in the price of crude oil in the international market directly influences the price of crude oil in the domestic market.
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As fuel prices have registered a decline in International market in past six weeks, that is why the fuel prices have now reached from $86.29/barrel to $63.3/barrel. It has also impacted fuel prices in domestic market too.
Indian Rupee has also become stronger against Dollar. From October 3 to November 21, Crude Oil Prices have come down from 36.31 percent to Rs 63.3 per barrel. Petrol and Diesel prices in Delhi have taken a plunged by 8.9 and 5.28 percent, respectively.
On october 3, Petrol price was Rs 83.85/ltr, where as on November it was Rs76.30/ltr. Diesel prices were registered Rs 75.25/ltr on October 3, whereas on November 21, it was Rs71.25/ltr. During this time Rupee also became stronger against US dollar by 2.64percent. On November 21, the price of one dollar was Rs 71.30.
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There are considerable factors responsible for the falling prices of crude oil in the International market. The main factors behind this plunge are:
#Saudi Arabia and other oil producers, who used to produce large quantity of oil in the year 2017, have now started producing enough quantities of oil so that the problems of consumers could be reduced.
#At the same time, US has started to produce more oil than expected. Despite the war, oil production in Libya has increased. On the other hand, Venezuela despite economic crisis managed to produce more than expected. Oil storage started in the world has once more started.
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The post Petrol and Diesel prices likely to fall further | Know why appeared first on Newstrack English.