Good News! Fuel prices will see a further dip as the global crude oil price has reduced. Petrol and diesel in Delhi cost INR 63.2 and INR 44.95 for a litre (respectively). There will be a further reduction in price.
The crude oil prices in the US fell below $40 a barrel for the first time since the 2009 financial crisis, owing to US energy firms added two more oil drilling rigs last week, this being the fifth weekly increase in a row.
“The market is stuck in a relentless downtrend,” said Robin Bieber, a director at London brokerage PVM Oil Associates. ” The trend is down – stick with it.”Due to the growth in demand stagnating from the world’s second-biggest oil user, oil dealers expect a significant build-up in surplus oil stocks. US October crude fell $1.30, or 3.2 per cent, to $40.02 a barrel, having touched a new 6-1/2-year low of $39.86 a barrel. Front-month US crude has fallen 33 per cent over eight consecutive weeks of losses, the longest such losing streak since 1986, as reported by ET.
After fuel prices dropping three times within a month, in India, a further drop is expected in the days to come. This sounds like good news and can act as a catalyst in boosting passenger car sales. Car companies are riding high on the coming festive season, which is expected to do some good to the otherwise lull industry. With further drop in fuel prices during the festive season, it would be a much needed support that the industry is seeking.