Business: There is relief news for India. The price of crude oil in the international market has slipped below $ 70 per barrel. This is the lowest level of crude oil prices in the last nine months since December 2023. WTI Crude is trading below $ 70 per barrel at $ 69.68 per barrel while Brent Crude Oil is trading near $ 73 per barrel. India imports more than 80 percent of its crude oil consumption. 

Why did crude oil prices fall? 

This fall in crude oil prices has been seen due to the fear of a decrease in the demand for crude oil. Demand is expected to decrease especially due to China's economic slowdown. At the same time, this fall in crude oil prices has also come due to the expectations of starting crude oil export from Libya. After the dispute between the opposing governments of Libya, the oil fields there were closed and the export terminals were also closed. But after the deal for the appointment of the governor of Libya Central Bank, there is a possibility of the dispute being resolved and the supply is likely to start. At the same time, it is believed that OPEC countries may reconsider the decision to cut crude oil production. Due to all these reasons, the prices of crude oil have come down in the international market due to the possibility of increase in the supply of crude oil. 

Government oil companies are having a great time!

Government oil companies will benefit greatly from the big fall in crude oil prices. They will get crude oil at a cheaper rate. But whether consumers will benefit from this or not is a big question. In August 2024, government oil companies were making a profit of Rs 9.3 per liter on selling petrol and Rs 7.6 per liter on selling diesel, which is now expected to increase to Rs 14 and Rs 13 per liter. In such a situation, government oil companies are expected to make huge profits between July and September in the second quarter of the current financial year 2024-25. But it is difficult to say whether consumers will get anything. 

This is how you can get relief from inflation!

If this fall in crude oil prices continues for a long time, the pressure on the government to reduce the prices of petrol and diesel may increase. Especially the pressure to reduce the prices of diesel may increase, which may make freight cheaper. This will have a direct impact on the prices of food items, which has increased the concern of RBI. High inflation rate remains the biggest obstacle in the way of reduction in interest rates. Reduction in the prices of petrol and diesel can help in dealing with inflation, which can pave the way for reduction in interest rates.