Published On : Mon, Nov 19th, 2018

Falling crude oil reduces fuel prices in Nagpur

Petrol Price

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nagpur: Petrol prices have come down by Rs 9.14 per litre in the last 44 days in Nagpur city. Diesel prices also dropped by Rs 5.17 per litre in the same period.

On 4 October 2018, petrol was sold at Rs 91.91 and diesel at Rs 80.71 per litre in Nagpur. On 18 November 2018, petrol was priced at Rs 82.77 while diesel cost Rs 75.54 per litre.

Now what prompted the fall in petrol and diesel prices? Experts in petroleum sector say that prices of crude oil had dropped in the international market from $86 per barrel to $68 per barrel. The USA had banned eight countries, including main importers India and China, from purchasing crude oil from Iran. This had resulted in steep rise in petrol and diesel prices. Petrol prices had touched Rs 90 per litre in Nagpur.

The USA has increased its supply of crude oil in the international market and also relaxed the ban on eight countries to some extent. This is resulting in continuous fall in crude oil prices.

Fuel prices may rise again after 6 Dec

Experts in petroleum sector informed that an important meeting of OPEC – an organization of crude oil producing countries – has been scheduled on 6 December. The meeting is likely to decide on reducing production of crude oil. If this happens, then prices of crude oil will once again jump in the international market, further resulting in increased prices of petrol and diesel.

Slight gain for Rupee against USD

The slight improvement in Rupee against the US Dollar also resulted in fall of fuel prices. The Rupee has gained from 74 to 72 per USD.