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Petrol and Diesel prices in India were reduced on Wednesday due to the looming price war between Russia and Saudi Arabia. International Crude Oil rates were at its lowest in ages due to OPEC (The Organization of the Petroleum Exporting Countries) failing to reach an agreement with Russia in regards to production cuts. Saudi Arabia plans to increase the crude output above 10 million barrels per day in April if no agreement is reached.
The rising uncertainty in the International crude market is source of good news for Delhi residents who saw a sharp fall in petrol and diesel prices on Wednesday. Petrol per litre in Delhi on Wednesday was reduced by Rs 2.69 which now stands at Rs 70.29. Meanwhile, diesel prices have gone down by Rs 2.33 at Rs 63.01 which will cheer the National Capital’s residents. Fuel prices have been falling since February 27, 2020, and will be going down further due to the failure of the oil-producing countries to come on a single page regarding pricing and supply. Fall in crude prices is good news for India as it will reduce India’s import bill and help in controlling the fiscal deficit outlined in the 2020 Economic Budget.
On Monday, the Petrol prices went below Rs 71 mark, the first time it happened in eight months. Wednesday price cut wouldn’t be the last fuel price cut in India if the international trends are anything to go by. Current petrol and diesel prices in India don’t immediately reflect the slump in International prices as the oil companies base the prices on the 15-day average of international benchmark rates. Saudi Arabia and Russia are respectively the largest and second-largest exporter of crude oil and both of them haven’t come to a consensus regarding the production cuts so we can expect a further reduction in petrol and diesel prices in India.