NEW DELHI: India’s crude cost has slipped below $100 per barrel for the first time since April in step with this week’s fall in benchmark rates. While it may appear to be a silver lining for the rupee, an immediate cut in fuel prices is unlikely as the Indian currency’s record fall and a freeze on pump rates still keep retailers in the red.
Data show the Indian Basket, or the mix of crude bought by Indian refiners, falling to $99.76 per barrel on July 14. The basket was last below $100 on April 25 when it stood at $99.17 a barrel.
The fall comes as global prices dropped 5.5% over the week as recession fears overshadowed demand-supply mismatch concerns. But the market remains volatile, with benchmark Brent bouncing back above $100 on Friday as hopes of an early production increase by Saudi Arabia and UAE receded.
