Oil prices plunge: the effect of price plunge on Indians

Oil prices plunge. However, the crude oil prices hit their highest mark in 14 years to stand at $ 139 per barrel.

During the beginning of the year, the price of the Brent crude oil was $78.11 per barrel. Although, on Wednesday, it was $102.7 which is 32% more than the price in the beginning of the year.

The prices are plunging as there is a nuclear deal with Iran that may increase the supply of crude oil. Thus, it will relieve the crude oil prices. Moreover, there is a surge of COVID-19 cases in China and it is imposing lockdowns. Therefore, the reduction in demand is lowering the prices of crude oil.

Though, the rise in crude oil prices is due to Russia-Ukraine war.

On 16th March, Joe Biden, the President of US tweets about decreasing oil and gas prices.

He writes that oil companies should not comfort their loss ‘at the expense of hardworking American

Effects of oil prices plunge in India:

India imports 85% of its crude oil needs. Thus, usually, an increase in crude oil prices leads to an increase in retail prices of petrol and diesel in Indian petrol pumps.

However, so far, since 4th November, India is able to maintain a constant price despite 27 percent increase during the mentioned period.

Further, analysts forecast that OMC (Oil Marketing Companies) will align their prices with international rise in crude oil prices.