Domestic fuel prices set to reduce as international crude oil rates plunge 10 per cent

State-run oil companies will now have some room to cut domestic fuel prices as international crude oil rates have slumped 10% in about a fortnight.

Crude oil has fallen to $64 a barrel from $71 a barrel earlier this month on weakening demand recovery prospects as European cities planned mobility restrictions amid rising Covid cases.

Oil prices had risen on producing countries’ decision to extend the supply cut pact into April. The anticipation of quicker demand recovery due to wider vaccine roll out and the big US stimulus also helped boost prices.