Petrol and diesel Prices Could Drop, Says Petroleum Secretary

New Delhi: Pankaj Jain, Secretary of the Ministry of Petroleum and Natural Gas, has suggested that petrol and diesel prices might decrease if global crude oil prices remain low for an extended period. Jain indicated that if crude oil prices stay low, oil companies could reduce fuel prices accordingly. Additionally, Jain mentioned that the government is considering the removal of the windfall tax, with discussions between the oil ministry and the finance ministry ongoing.

On Tuesday, global oil benchmark Brent crude futures fell to their lowest level since december 2021. This decline came after OPEC+ downgraded its demand forecast for this year and 2025, which outweighed concerns about supply disruptions from Tropical Storm Francine. Brent crude futures dropped by $2.65, or 3.69%, to $69.19 per barrel, while U.S. West texas Intermediate (WTI) crude fell by $2.96, or 4.31%, to $65.75 per barrel. Both benchmarks experienced a decline of over $3 during the trading session, following a 1% rise on Monday. WTI crude futures, in particular, fell more than 5% on Tuesday, reaching their lowest levels since May 2023.

The Organization of the Petroleum Exporting Countries (OPEC) reported a reduced global oil demand forecast in its monthly report. OPEC now expects global oil demand to increase by 2.03 million barrels per day (bpd) in 2024, down from the previous forecast of 2.11 million bpd. The 2025 global demand growth estimate has also been lowered to 1.74 million bpd from 1.78 million bpd. These adjustments contributed to the drop in oil prices due to concerns over weakened global demand and potential oil oversupply.
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Balasahana Suresh

12/09/2024 03:26 PM