Fuel prices have come down, with cost of a litre of petrol and diesel in New Delhi is Rs 63.2 and Rs 44.95 respectively. This is the lowest it has even come since 2012, and now the fuel prices will see a further dip as the crude oil price has come down to $40 for a barrel, which was the price before the hike in 2009.
The reduction in demand for fuel by China and other sources means that the oil prices will see a reduction even below $40. As the fuel prices in India are now as per the barrel cost, we will see a reduction in fuel prices even further. In a city like Mumbai, petrol costs Rs 68.2 for a litre, while diesel is now at Rs 50.04. At a point in 2014, diesel was touching about Rs 66 for a litre in Mumbai. This has come down by 32 percent in under two years.
This is because the energy markets saw a dip as a world stock and currency markets joined an extended rout across raw materials this week as China's factory sector reduced at its fastest pace in almost six and half years in this August. As there is lesser demand, the fuel prices have come down and are a lot more affordable than before. A reduction of purchase of fuel in China has resulted in reduction of fuel cost for the global fuel buyers.
