Fuel prices set to fall as virus scare may hit demand
NEW DELHI: Local rates of petrol and diesel are set to fall further, after declining about Rs 1.5 a litre in thirteen days, as crude oilNSE 0.84 % slid 4% this week to about $62 a barrel on fears that China’s coronavirus outbreak may hit demand amid copious supplies. The virus, which has infected more than 800 people so far and killed 25, has spread to at least seven other countries.
Markets fear the outbreak would hurt travel, oil demand and economic growth in China, the world’ fastest-growing oil consumer.
Oil steadied on Friday, rising 0.5% to $62.35 a barrel, but was still down 4% for the week. A surprise 405,000-barrel decrease in US crude stockpiles helped push up price on Friday.
Domestic rates of petrol and diesel are based on the 15-day moving average of the international rates of respective fuels – which helps spread spikes and falls over several days.
