Petrol and Diesel prices may be slashed from Aug 1 amidst falling prices in the international market
Global oil prices fall to a four month low
The Indian basket of crude oil price has plummeted to $54.41 per barrel, its lowest in four months, on the back of multiple factors, including a contraction in the manufacturing sector in China, the world’s second-largest consumer of crude after the US.On Monday, Chinese shares slumped 8.5 percent on the Shanghai stock market, their biggest one-day fall since February 2007, after weak economic data revived fears about the health of the world’s second-largest economy.
Oil was also pressured by a sharp increase in US drilling activity with data on Friday showing producers added 21 rigs last week, the most in over a year, suggesting a ramp up in output as crude futures recovered from six-year lows seen in the first quarter.
The Indian basket represents the average price of Oman and Dubai sour grade crude and the sweet Brent crude oil processed in Indian refineries in the ratio of 72:28. It stood at $54.41 per barrel on the last trading day of July 24, falling from a peak of $66.54 per barrel on May 6, and the lowest since April 2 price of $54.77 per barrel.
This could bring good news for the common man who can expect a reduction in petrol and diesel prices on August 1 when oil marketing companies review rates. On July 16, oil marketing companies, led by Indian Oil Corp Ltd, reduced the retail prices of petrol and diesel each by Rs 2 per litre.