The price of crude oil has dropped in the international market amid elections in several countries, primarily due to reduced demand from China. Recently, crude oil prices had been hovering around USD 90 per barrel but have now fallen to USD 70 per barrel, the lowest level in three years. There has been criticism that oil companies, which raise prices when the cost of crude increases, fail to pass on the benefits to consumers when prices drop. Experts caution that the central government is closely monitoring the situation, with some predicting that crude oil prices could suddenly spike to USD 80 per barrel in the near future.
Despite these global trends, petrol and diesel prices in India saw a slight reduction last March, which opposition parties claimed was a pre-election move. The cost of fuel plays a crucial role in controlling inflation in India. Meanwhile, oil refiners and marketing companies are currently recouping losses from 2022 and 2023. Although India’s oil imports have remained stable, the declining international crude prices have slightly eased the cost burden. It’s important to note that India relies on imports for 85% of its crude oil consumption.