The country may get the gift of cheap petrol on New Year, prices may reduce by Rs 5 - Newztezz Online

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Friday, November 17, 2023

The country may get the gift of cheap petrol on New Year, prices may reduce by Rs 5

Crude oil prices in the international market have decreased by more than 10 percent in the month of November. In the coming days, the price of Brent crude oil may reach $ 70 per barrel. According to experts, there may be a decline of up to Rs 5 per liter in the prices of petrol and diesel in the fourth quarter of the financial year i.e. on the New Year.

The prices of crude oil have skyrocketed in the international market. Both Brent and WTI have reached their lowest level in four months. Where the price of Brent has fallen below $ 80 per barrel. On the other hand, the price of WTI is at $ 71 per barrel. In fact, there was a decline of about 5 percent in the price on Thursday. The reason for this is the decrease in demand and increase in American inventories. Now the biggest question is that when will the common people get its benefit? When will the prices of petrol and diesel reduce in India?

If experts are to be believed, after December the government and petroleum companies may take a decision to reduce the prices of petrol and diesel. This means that common people can get the gift of cheap petrol on New Year. According to analysts, there may be a decline of Rs 3 to 5 per liter in the price of petrol and diesel in the month of January. However, the OPAC meeting will also be very important in the coming days. In which the reduction in crude oil production can be extended till March 2024. Due to which a slight increase in the price of crude oil may be seen.

On the other hand, according to some experts, there may be a decline in the dollar index, due to which the price of crude oil is falling. Even after that, the biggest concern remains regarding the fall in the rupee. Rupee has crossed the level of 83 against the dollar. Both the rise and fall of the rupee against the dollar play an important role in the import of crude oil. Let us also tell you what the prices of crude oil have become at the current level. Also, what are the experts predicting about the reduction in the prices of petrol and diesel?

Fall in crude oil price

On Thursday, oil prices fell nearly 5 percent to their lowest level in four months. The biggest reason for this is said to be the concern over global oil demand after weak data from America and Asia. Brent crude oil fell $3.76, or 4.6 percent, to close at $77.42 per barrel.

US West Texas Intermediate crude, or WTI, fell $3.76, or 4.9 percent, to $72.90. Both Brent and WTI had earlier traded at their lowest levels since July 7, at $76.60 and $72.16 per barrel, respectively.

In a Reuters report, Price Futures Group analyst Phil Flynn says that both the mood and charge are negative. Something has to be done to change this sentiment, and people will continue to put up with it until they realize enough is enough. The number of Americans filing new claims for unemployment benefits reached a three-month high last week, showing that labor market conditions are continuing to improve.

American figures and China's demand

This report comes after other data showed that US retail sales declined in October for the first time in seven months. During this period, there was a decline in the sale of motor vehicles and expenditure on hobbies. This pointed to slow demand at the beginning of the fourth quarter, which further strengthened expectations of an interest rate hike by the Federal Reserve.

Both OPEC and the International Energy Agency have predicted a supply decline in the fourth quarter, but US data on Wednesday showed that inventories remained high. On the other hand, due to the economic condition of China, demand has decreased significantly. Due to which the price of crude oil has been affected.

keeping an eye on OPEC meeting

According to Anuj Gupta, Head of Commodity Currency, HDFC Security, investors also have their eyes on the next meeting of OPEC. Many important decisions can be taken in this meeting. He said that the oil production cut can be extended till the March quarter. Due to which the price of crude oil increases again.

But this increase will not have that much impact. Production is being cut by both Saudi Arabia and Russia. So that the price of crude oil can be kept at least at $ 80 per barrel. Both countries argue that this is being done to reduce the damage caused by Covid.

Regarding reduction in the prices of petrol and diesel, he said that there are very few circumstances in which the prices will be reduced in December. The government and petroleum companies are waiting for stability in crude oil. It is possible that the prices of petrol and diesel may start decreasing from the new year. If this happens then the prices of petrol and diesel may reduce by Rs 3 to 5.

Fall in rupee also became a concern

Ajay Kedia, director of Kedia Advisory, says that there is a decline in the dollar index. At present the dollar index has come to the level of 104, which can also go to the level of 102 in the coming weeks. Even after that, the decline in rupee against the dollar remains a big concern. He said that the country imports more than 80 percent of crude oil. The rise in dollar against rupee leads India towards expensive crude oil. Due to which India's trade deficit increases. In such a situation, nothing can be said by when the prices of petrol and diesel will reduce in the coming days.

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.

Price of petrol and diesel in major cities of the country

New Delhi: Petrol rate: Rs 96.72 per liter, Diesel rate: Rs 89.62 per liter

Kolkata: Petrol rate: Rs 106.03 per liter, Diesel rate: Rs 92.76 per liter

Mumbai: Petrol rate: Rs 106.31 per liter, Diesel rate: Rs 94.27 per liter

Chennai: Petrol rate: Rs 102.63 per liter, Diesel rate: Rs 94.24 per liter

Bengaluru: Petrol rate: Rs 101.94 per liter, Diesel rate: Rs 87.89 per liter

Chandigarh: Petrol rate: Rs 96.20 per liter, Diesel rate: Rs 84.26 per liter

Gurugram: Petrol rate: Rs 97.18 per liter, Diesel rate: Rs 90.05 per liter

Lucknow: Petrol rate: Rs 96.57 per liter, Diesel rate: Rs 89.76 per liter

Noida: Petrol rate: Rs 96.79 per liter, Diesel rate: Rs 89.96 per liter

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