InvestorQ : Why is the oil price falling so sharply in the international market and why are petrol prices not falling in India?
Ria Jain made post

Why is the oil price falling so sharply in the international market and why are petrol prices not falling in India?

Answer
image
Anu Biswas answered.
8 months ago
Follow

That is an interesting question. Brent Crude fell to a 13-month low of $53.90/bbl on Monday even as the WTI Crude fell below the psychological $50/bbl mark. The oil markets saw a huge sell-off after the Chinese Coronavirus death toll crossed the 1000 mark. This makes it worse than the SARS epidemic of 2003. China is also much larger and powerful today than it was in 2003. Brent crude prices also fell as markets waited for Russia’s response to OPEC’s call for cutting supplies. There is also the risk of US flooding the market with oil towards the last quarter. However, prices of Indian petrol and diesel include a huge component of state level levies and central taxes like excise and customs. That is the reason petrol and diesel prices do not fall as fast as crude prices globally, but the prices are surely reducing now.

6 Views