For the first time in the last eight months, petrol prices dropped below 71

Petrol price in Delhi dropped to Rs. 70.59 while diesel prices dropped to Rs. 63.26: Lowest price since July, 2019

(PTI) New Delhi, Ta. March 9, 2020, Monday

For the first time in the last eight months, petrol prices have dropped below Rs 71. India is likely to benefit from the oil trade war that began between Saudi Arabia and Russia.

It is worth mentioning that due to the trade war between Russia and Saudi Arabia, crude oil prices have dropped by up to 31%. India imports 84 percent of its crude oil from other countries. This will result in a significant reduction in the government's import bill. However, the difficulty of ONGC going through difficult times already will increase.

The fall in crude prices will also help boost the country's economic growth, which has fallen to an 11-year low. Petrol price today fell to Rs 70.59 in Delhi. Which is the lowest since July 2019. While the price of one liter diesel has come down to Rs 63.26.

Petrol and diesel prices have been steadily falling since February 27 following the international market trend. Since February 27, petrol prices have been reduced by Rs 1.42 and diesel by Rs 1.44.

However, with the fall in crude prices, the value of the rupee against the dollar is also falling. The rupee had lost 23 paise to close at 74.10 today. Due to the rupee depreciation, the Indian government will have to pay more when buying crude in the international market as it has to pay in dollars when buying crude from the international market.