Petrol Diesel Price: There is a slight good news for everyone. The 107-day war between the US and Iran has finally wrapped up, bringing a huge sense of relief to countries worldwide, including India. With this historic peace deal in place, global crude oil prices have plummeted by over 4 percent.
In recent weeks, petrol and diesel prices in India have risen by about Rs 7.50 per liter. Now that the conflict is over, everyone is wondering if oil prices will drop in the country. Let’s dive into this topic in the article.
A significant drop in crude oil prices
Right after the peace agreement between the US and Iran, there was a notable decrease in crude oil prices on the global market. The price of ‘Brent crude’, which is the international benchmark, has dropped by roughly 4% to below $85 per barrel. Meanwhile, the price of the US oil standard, ‘WTI crude’, has also decreased to around $80 per barrel.
The war had completely blocked the Strait of Hormuz, a crucial oil supply route, for the past three months. This route accounts for about 20 percent of the world’s total crude oil and gas supply. With the US President announcing the lifting of the blockade, oil shipments through this route will now be able to resume smoothly.
Impact on the Indian market and the public
Last month in May, due to a crude oil shortage, Indian oil companies raised petrol and diesel prices by about Rs 7.50. According to the Union Petroleum Ministry, prices will now be reassessed based on the new shipments of crude oil arriving in India and the overall supply situation. If crude oil prices stay low in the international market, the public might see some relief on petrol and diesel prices in the near future.
Will petrol and diesel prices come down immediately?
Experts believe that many oil refineries and gas fields have suffered huge damage in the war, which will take time to repair. It may take a few weeks for oil producing countries to bring crude oil production back to normal pre-war levels. Indian oil companies (like IOCL, BPCL) can start gradually reducing domestic prices only after closely studying the global market.