Oil price fall due to coronavirus to benefit India

Since China admitted it was affected by the pandemic, the price of crude oil has fallen by 20%, reaching a level of $ 55 per barrel, a drop of $ 13


ISRO Too Competent To Need Society’s Immature Reaction

Three days have passed since Lander Vikram strayed from the planned trajectory; the nation is still trying to motivate ISRO scientists as if they were in a state of despondency, notwithstanding their 95% success in meeting the Chandrayaan-2 mission objectives

Pandits’ Return Will Be Real Normalcy In Kashmir

The opposition and media would have the world believe that not persecuted Pandits getting their home and hearth back but terrorists conveniently using internet, bombs and bullets would qualify as normalcy in the Valley

Muslim Women Act Proves Modi Can If He Wants To

The passing of the Muslim Women Bill in the Rajya Sabha, which has established BJP's floor management prowess, must wake Hindus and the middle class up to pressure PM Narendra Modi to legislate what they have been demanding for ages
- Advertisement -

The pandemic of novel coronavirus disease in China has dealt a blow to the international crude oil prices, proving a blessing in disguise for the economy of India. The price of oil has fallen by 20% and the price of liquid natural gas (LNG) has reached a record low.

Whereas oil and gas producers have been forced to reduce prices, this opens an opportunity for Indian companies and end consumers. Petrol and diesel are constantly getting cheaper as the price of crude oil is decreasing, leaving Indians with more money for other expenses.

On 7 January, China announced an outbreak of the coronavirus when the disease it caused had already crossed the threshold of an epidemic and turned into a pandemic. Since then, the price of crude oil has fallen by 20%. Now crude has reached the level of $ 55 per barrel, a drop of $ 13.

The LNG price has come down to $ 3 per mmBtu in a month. China is returning shipments, causing traders to seek other markets.

Crude oil cheaper, benefit to Indian economy

  1. Due to cheaper crude oil, the customer will spend less on petrol and diesel, which will save more money in his hands for other expenses.
  2. Low prices of crude oil are good in terms of current account deficit, rupee and inflation rate.
  3. Refiners can increase fuel prices to recover investment made in BS6 upgrade.
  4. The subsidy on fuel is expected to decrease.
  5. Government can raise duty to increase income.
  6. LNG terminal operators can store cheap gas and sell it later, taking advantage of lower prices.

One month of coronavirus, and the prices of petrol and diesel have plummeted. Petrol prices have fallen by more than Rs 3 since 7 January while diesel prices have also come down by about the same margin.

JP Morgan believes that the average crude oil price for the year 2020 will be $ 60.40 per barrel. This estimate is $ 4.1 lower than the previous one.

OPEC, Russia and others are contemplating a reduction in production. They are considering cutting 6,00,000 barrels per day production.

- Advertisement -

More reports

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -


BJP Could Not Have Won With This Approach To Delhi

From not paying attention to the corruption-ridden MCD to aloof leaders whose houses witnessed no activity during campaigns, BJP went all wrong in the Delhi assembly election

AAP Win In Delhi Was Foregone Conclusion: 5 Reasons

The five factors that contributed to the AAP victory have been arranged in the decreasing order of relevance; the first three will remain constant for a few more Delhi elections

Rahul Gandhi’s Intemperance Costs INC Dear Again

After forfeiting the Delhi poll with his 'danda mārenge' comment, the politician who has pledged never to grow up must put both his feet permanently in the mouth to gag himself

Bloomberg For US President? Why Not?

Mayor Michael Bloomberg can be an attractive candidate to a lot of voters – those who are concerned about the leftward, idiosyncratic, wokey, “let us butt into every other country’s internal policy initiatives” overreach of the Democrats

‘सभी संगठनों से मुक्त’ जामिया शूटर ‘बजरंग दल’ का कैसे हो गया?

जामिया क्षेत्र में गोली चलाने से पहले 'रामभक्त गोपाल' ने अपनी प्रोफ़ाइल बदली और धड़ल्ले से दक्षिणपंथी संगठनों व एक पार्टी के नाम दर्ज कर दिए

30 साल से ज़िन्दगी तलाशते कश्मीरी हिन्दू

मस्जिदों से हिन्दुओ के सफाए के पैगाम आए; एक के बाद एक दिल दहलाने वाली खबर आई; जुमे की नमाज़ के बाद सड़को पर जो भी हिन्दू दिखा, काट दिया गया

For fearless journalism

%d bloggers like this: