NEW DELHI: The government’s policy to sit out the surge in oil prices seems to be paying off. Crude tumbled below $100 per barrel on Tuesday, easing the need to sharply raise pump rates or cut taxes.
Global benchmark Brent crude settled at $98/barrel after slipping to $97.44 as a massive outbreak of Covid-19 in China gave rise to worries over demand destruction and Moscow’s support for early resumption of nuclear talks with Iran eased supply concerns.
A decline in oil prices will reduce the pain for fuel retailers by reducing their under-recovery on petrol and diesel, which had risen to about Rs 20 or so as Brent hit $139/barrel on March 7.
The ‘Indian Basket’, or the mix of crude bought by Indian refiners, slipped to $110.3 on Monday from a high of $128.24 on March 9.
