Global crude oil prices drop to a four-year low

Global crude oil prices dropped to $84 per barrel on Wednesday, raising hopes that retail fuel prices will be slashed further. India currently imports around 190 million tonnes of crude oil per year or two-thirds of the nation’s total energy demand, at a cost of $145 billion. This accounts for more than a third of the nation’s import bill. Besides causing a reduction in fiscal deficit (the amount of money the government borrows to fund its expenses), the fall in crude oil prices will also ease prices of domestic food and fuel. Oil companies on Tuesday slashed petrol prices by Re 1 per litre, with diesel due to fall by Rs 2.50 in the next few days.

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