Amidst COVID-19 pandemic, the global economy has taken a downturn. Stock, as well as commodity markets, are facing sharp falls. Rates of two of the most popular brands of crude, namely Brent and WTI have come down by 30% and are trading at $30.85 and $28 per barrel respectively. Analyzing the trends in global crude prices, SBI research report Ecowrap has predicted a corresponding reduction in petrol and diesel prices. As per the SBI Ecowrap report, petrol and diesel may become cheaper by Rs. 12 and Rs. 10 per liter respectively, provided the central and state governments don’t levy higher excise duty.
The common man may get the benefit of falling crude prices, only if the government doesn’t increase the excise duty on these commodities. Recently, the government has increased the excise duty on petrol and diesel by Rs. 3. This rise in the excise duty, may partially if not fully, affect the benefits of falling crude prices to the common man.
Despite the fall in international crude prices, petrol and diesel prices in India have remained unchanged for the last two days. The rate list of petrol and diesel has remained the same in all the metros. Per the liter price of Petrol in Delhi, Mumbai and Kolkata are Rs. 69.59, Rs. 75.30 and Rs. 72.29 respectively, whereas the cities are selling a liter of diesel at Rs. 62.29, Rs. 65.21 and Rs. 64.62 respectively.
Chief Economic Advisor of SBI Group, Mr. Saumyakanti Ghosh suggested that common consumers may get the maximum benefit of falling crude prices if the government doesn’t increase excise duty.