The price of crude oil imports in India has dropped below $70 per barrel for the first time since August 2021 which indicates possible price reductions at fuel pumps. The average import price of crude oil during April’s first half reached $69.39 per barrel which represents a 22% decrease from the $89.44 recorded in April 2024.
The Brent crude global benchmark dropped below $65 because Goldman Sachs issued bearish predictions while OPEC warned about decreasing demand. The substantial decrease in crude imports at 87% affects the macroeconomic situation positively and creates conditions for retail fuel price reductions.
The current pump prices remain unchanged despite this development. The government reduced petrol and diesel base prices by ₹2 on April 8 but used the funds to increase excise duties which prevented any change in the final retail prices in New Delhi.
Petroleum Minister Hardeep Puri explained that oil companies maintain expensive inventory stockpiles but he acknowledged that the current situation provides flexibility for price reductions. The government expects windfall gains of ₹32,000 crore which will likely result in consumer fuel price reductions if import costs remain low.
