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Global Oil Price Reduction: How Realistic is it for End Consumers?

News

Petrol and diesel will be dearer in the national capital with the AAP government’s decision to increase VAT rates on them. However, the Centre reduced the price of petrol and diesel by Rs 2 just after the decision to hike the prices by the Delhi government.

Source: ET

SNP Insight

Amid the Global Oil glut, reduction in oil prices has always come as a respite for the end consumers as well as market players. However, the recent move of state government suggests the conflicting views with aim to boost its own revenues. The proposed reductions in Gloabal Oil market may be marred to the Indian Industries in some other states as well leading to higher logistics cost as well in the country.If such developments continue to take place,the knock on effect of increased prices can later be seen on the manufacturing industry as well.

Source: SNP Infra Research