New Delhi | Jagran Business Desk: The central government and general public may soon get relief as international crude oil prices have dipped low defying initial reports. In the last eight days, crude oil prices have fallen below $ 77.60 per barrel to $ 68.40 per barrel. This comes as the biggest drop in crude oil prices in the last 10 months. As a result, the country's state-owned oil companies will soon cut retail prices of petrol and diesel.

There is a possibility of a cut in the retail price of petrol by Rs 4 per liter and diesel by Rs 5 per liter even if the calculation is done on the basis of only $ 8.20 fall in the price of crude oil in the last eight days.

With this, the government will get also a big relief politically. Especially when the monsoon session of Parliament is going on and the topic of inflation is hot among the opposition party who is constantly trying to surround the central government on the issue.

On Tuesday also, Congress leader Rahul Gandhi raised the issue of the recovery of Rs 3.35 lakh crore due to Central Tax on petroleum products.

Another relief to the government due to the fall in crude oil prices in the international market will be that the prices of petrol and diesel in the domestic market will also come down and there will be no impact on the revenue collection of the government. 60 per cent of the retail price of petrol and diesel paid by consumers goes to the central and state treasury. Petroleum products are the biggest source of revenue collection for both governments. This fall in prices will also bring down the inflation rate in the country.

How will fuel prices come down?

There are two main reasons for the fall in crude prices in the international market lately. First is that due to the end of the dispute between the oil producing countries like the United Arab Emirates (UAE) and Saudi Arabia, global crude production has been increased by 4 lakh barrels per day. The second reason is that due to the ongoing COVID-19 pandemic the international business has got affected.

Posted By: Sugandha Jha