Crude oil rates drop, petrol-diesel prices to reduce in the new year?

The last price drop in petrol-diesel was seen 1.5-2 years ago. Despite international markets experiencing falling crude oil prices, the union government had not made any changes in the domestic prices of petroleum. The rising prices have been a grave cause of concern with a drop nowhere in sight. Today crude oil prices dipped once again, starting discussions about whether the government will finally reduce petroleum prices. 

In the backdrop of the incoming Loksabha elections, it is not entirely possible to deny the possibility of a price drop. Petrol and diesel rates have been unstable for the past two years. The government has remained neutral in its reaction to falling crude oil prices despite buying at a low price from Russia. 

The rates in the country have been stagnant since 589 days. The last change happened in May 2022. The crude oil rate at that time was around 90 dollars per barrel which is currently at $80. The prices will even go to &79.07 dollars in the new year, which can provide respite to the common public. 

Fuel rates in India are dependent on the international market. Even if there is an increase of $1 in the international market, diesel prices can rise by 50-60 paise. This also means that the prices drop if the rate decreases by a dollar. However, oil companies and the government seem to be indifferent towards the stagnant prices. One can only hope to see some respite in the upcoming election year.