Petrol and Diesel Prices Expected to Decline: SBI Report

SBI Research has projected that crude oil prices in the international market are likely to decline further this year. According to its latest report, the price of crude oil may fall to around $50 per barrel by June. The report, released on Monday, stated that a decline in crude prices would be favourable for the Indian economy and could boost the country’s annual GDP growth by an additional 0.10–0.15 percentage points.

Despite recent US attacks on Venezuela, which holds the world’s largest crude oil reserves, international crude prices have not witnessed any significant increase. Over the past week, prices have continued to hover around the $60 per barrel level.

India currently meets over 85% of its domestic fuel requirements through imports, and fuel accounts for a major share of the country’s total import bill. Based on historical data, the report estimates that if crude prices decline by 14% from current levels, the Indian rupee could appreciate by nearly 3%, potentially strengthening to around ₹87.5 per US dollar. Additionally, in view of rising global crude inventories, the US Energy Information Administration (EIA) has projected that Brent crude prices may fall to around $55 per barrel during the first quarter of this year (January–March).