Domestic fuel prices could come down soon. Here’s why

Domestic fuel prices in India could come down soon if state-run oil marketing companies decide to pass on the benefit of falling global crude oil prices. Over the past 10-14 days, there has been a sharp drop in global oil prices. Here is all you need to know:

Fuel prices in India could come down soon if state-run oil marketing companies (OMC) decide to pass on the benefit of falling international crude oil rates to citizens. Over the past 10-14 days, global crude oil prices have dropped sharply by almost 10 per cent. This indicates that OMCs have more room to cut petrol and diesel prices, which are currently retailing at a record high in India. It may be noted that benchmark Brent Crude oil is currently retailing at $63.98 per barrel, down from the recent high of over $70. West Texas Intermediate (WTI) Crude or US crude has also fallen to $60.94 per barrel. International rates had started rising in April after OPEC+ decided to extend production cut. Global oil prices also increased amid hopes of quicker demand recovery and the recent rollout of the US stimulus package.