The slide in global crude oil prices on Monday gave hope for a similar fall in domestic petroleum prices.
The fall in oil prices comes after a blockage at strategic Suez Canal spooked global Impex industry, while a massive wave of Covid-19 infections continued to impact large parts of Europe.
Resultantly, global fears have resurfaced on the slowdown economic recovery due to this wave.
At present, crude prices are reacting to the negative news flows.
The Brent crude futures slipped to $63 levels a barrel on Monday. Similarly, the US crude traded lower.
The WTI crude oil traded lower by 1.05 per cent at $59.92, while Brent is down by 0.78 per cent at $63.65 levels.
However, the surge in domestic Covid cases will also weaken the rupee. Consequently, lower crude oil cost will dampen domestic petrol and diesel prices.
“Crude oil prices are expected to slide due to increasing coronavirus cases and lower demand. Lower import from China is also a negative for crude oil,” said Anuj Gupta, DVP Research, Angel Broking.
“In addition, the rupee is also expected to depreciate due to rising cases and fall in the equity market. Petrol and diesel prices may be revised downwards in India.”
Currently, petrol costs Rs 90.78 per litre in Delhi, while diesel is pegged at Rs 81.10 per litre.
Lately, prices of petrol had crossed the psychological Rs 100 per litre mark in some cities leading to increasing public outcry against the high prices and the inflationary impact of the auto fuels.