Fuel and Cooking Gas prices got cheaper

Impact of Fall in Crude Oil Prices

Petrol price was recently cut by 85 paise per litre, the second reduction in two weeks. On March 16, 2013, petrol price was slashed by Rs 2 per litre.

After including VAT, price of petrol in Delhi was down by Rs 1.02 per litre to Rs 67.29.

In Mumbai, now petrol costs Rs 1.07 lesser at Rs 74.14 per litre, 74.72 at Kolkata and Rs 70.34 a litre in Chennai.

The price of non-subsidised cooking gas (LPG) is also cut by Rs 3 a cylinder.

All these price cuts have been attributed to fall in international crude oil prices.

Thus international crude oil price, as a macro-economic indicator, has a direct impact on you as the price of petrol is purely market-determined now. Hence whenever, crude oil price increases, it will increase the cost of petrol and cooking gas and vice versa.

Apart from this, India imports 70% of its crude oil requirement, which includes industrial use as well as personal consumption. Hence, any change in these prices could push up allied costs.

Hence whenever crude oil prices rise globally, it could also spur the inflationary pressures, which would push up overall cost of living.