A fall in the global crude oil prices on Monday gave hopes for a similar slide in the domestic automobile fuel prices.
At 2.11 p.m. (IST) the Brent crude futures slipped 0.62 per cent to $64.14 a barrel, data on Oilprice showed. Similarly, the WTI crude was also down by 1.10 per cent to $60.30.
This latest fall comes after a massive wave of Covid-19 infections continued to impact large parts of Europe.
Resultantly, global fears have resurfaced on the slowdown in the economic recovery due to this wave. As a result, the crude prices are reacting to the negative news.
The surge in domestic Covid cases will also weaken the rupee. Consequently, lower crude oil cost will dampen domestic petrol and diesel prices.
“Crude oil prices are expected to slide due to increasing coronavirus cases and lower demand. Lower import from China is also a negative for crude oil,” said Anuj Gupta, VP Research, IIFL Securities.
“In addition, the rupee is also expected to depreciate due to rising cases and fall in the equity market. Petrol and diesel prices may be revised downwards in India.”
Currently, petrol costs Rs 90.78 per litre in Delhi, while diesel is pegged at Rs 81.10 per litre.
Lately, prices of petrol had crossed the psychological Rs 100 per litre mark in some cities leading to increasing public outcry against the high prices.