International crude oil prices have come down drastically in the last few days resulting in lower petrol, diesel prices in the India. The reduction in fuel prices following an rapid upswing in the last few months has given a much needed relief to the Bharatiya Janata Party (BJP) as it had come under severe attack from the Opposition over the issue.
On Saturday, petrol was being retailed at Rs 75.25 per litre and diesel at Rs 70.16 per litre in New Delhi.
The Congress had been targetting the BJP over spiralling petrol, diesel prices in the run up to the Assembly elections in five states - Madhya Pradesh, Chhattisgarh, Rajasthan, Telangana and Mizoram. The main Opposition party had been hoping to highlight the topic during the next year's Lok Sabha elections. However, it seems the Congress will have to drop its plans for now.
Crude oil price dips to 2017 level
The benchmark US crude contract fell $3.80, or 7 per ent, to $50.84 per barrel in electronic trading on the New York Mercantile Exchange. That is the lowest in over a year. Brent crude, the international standard, lost $3.17 to $59.43. It further went down to $59.26 a barrel on Friday touching the October 2017 level.
Experts say the US is increasing pressure on Saudi Arabia and OPEC to not cut production, as the Saudis had indicated they would, at their meeting on December 6. US President Donald Trump may have some leverage by not sanctioning Saudi Arabia over the death of a dissident writer. With oil supply already ample, that could push prices down further.
Trump had on November 21 tweeted to thank Saudi Arabia for the falling crude oil price while urging the country to take it down further.
"Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!" Trump had said.
Rising petrol, diesel prices: How Modi Govt responded
Worried by the ever-rising fuel prices, the Modi government had in October announced a cut in excise duty on petrol and diesel prices.
Apart from the excise reduction of Rs 1.5, the government told oil marketing companies to absorb Re 1 additional relief, adding up to a cut of Rs 2.5 per litre.
Rising petrol, diesel prices had given the Congress fodder to target the BJP government. (File Photo)
The slash in excise duty was announced by Finance Minister Arun Jaitley just days before Assembly election schedule for five states were announced.
Petrol, diesel prices in New Delhi in the last 15 days. (IndiaTV Graphics)
"We are also very much concerned over the steep increase in the prices of petrol and diesel and also fall in the value of the rupee against the dollar... We shall soon come out with an action plan," BJP president Amit Shah had said at a public gathering in Hyderabad indicating that the issue was of grave concern for the party which is eyeing another term in 2019.
(International crude oil rates updated from AP data)
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