As global crude oil prices drop, it may lead to a similar fall in domestic petroleum prices. Blockage at the strategic Suez Canal induced the fall in oil prices after a spooked global Impex industry, while a massive wave of COVID19 infections continued to impact large parts of Europe. Global fears of a slowdown in economic recovery have re-emerged, due to this wave. Crude prices are presently reacting to the negative news flows.
Anuj Gupta, DVP Research, Angel Broking said, "Crude oil prices are expected to slide because of the increase in coronavirus cases and lower demand. Lower import from China also has a negative impact on crude oil"
"Due to rising cases and fall in the equity market, depreciation of the rupee is also expected. Downward revision of Petrol and diesel prices can be expected in India."
Presently, in Delhi, petrol costs Rs 90.78 per litre, while diesel is at Rs 81.10 per litre. Prices of petrol lately, had crossed Rs 100 per litre mark in some cities leading to increasing public outrage against the high prices and the inflationary impact of the auto fuels.
