For all the people who drive their vehicles on a daily basis for different purposes, the news of petrol and diesel prices dipping might come as a surprise. For the day, petrol and diesel prices have come down 22 paise and 20 paise respectively.
The reason for such a price drop is directly associated with Brent Crude Oil dropping almost 14% last week. This is to be noted that, petrol prices are on a 5-months low, while diesel prices are on a 7-months low.
Petrol and Diesel prices in major states of India costs are noted below-
In the Indian capital Delhi, petrol and diesel prices are ₹71.49 per litre and ₹64.10 per litre respectively.
‘City of Dreams’ Mumbai records the highest petrol and diesel prices at ₹77.18 per litre and ₹67.13 per litre respectively.
Chennai selling petrol at a cost of ₹74.28 per litre and diesel at a cost of ₹67.65 per litre.
Petrol and diesel charges are ₹75.99 and ₹69.79 respectively, in Hyderabad.
Bengaluru costs ₹73.94 for petrol while diesel charges are ₹66.29.
Earlier Brent Crude oil prices dropped to $48.40, which is the lowest since July 2017. However, currently, Brent Crude oil price stands at $50.32 a barrel. Brent Crude oil faced the biggest weekly percentage decline of 14% last week, since their last record percentage decline in January 2016.
This is not just the scenario for Brent Crude oil, but WTI also had their biggest weekly percentage drop since December 2008, at a rate of over 16%.
The impact of Coronavirus is being felt in the economic sectors, while the first wave of the virus outbreaks witnessing almost no impact. In the last 10 weeks, the US has reported an 18% drop in jet fuel demand. The global demand for fuel has also decreased, with JBC Energy cutting off global demand growth for fuel to just 50,000 barrels, which is a little more than one-third of the global demand growth in the previous month.
The Organisation of the Petroleum Exporting Countries (OPEC) has made an additional cut of production 1 million barrels on a daily basis, due to the fear of Coronavirus affecting the global demand. OPEC+, which is a grouping of OPEC alliance in Russia, even under a deal signed till the end of March, has declared curbing of oil out by 1.7 million BPD.