The deal was formally signed in France yesterday, following the peace deal between the US and Iran. After the signing of the agreement, crude oil prices are falling. Crude oil had reached $120 per barrel amid tensions in the Middle East, but now it is seeing a sharp decline. This fall in prices has come after the opening of the Strait of Hormuz. Countries around the world expect crude oil prices to fall further as supplies gradually normalize. Brent crude prices fell to $78 per barrel on Thursday morning.
With the fall in crude oil prices, people are expecting a decline in the prices of petrol and diesel as well. People on social media have started asking questions about when domestic fuel prices will come down, as crude oil has fallen to $78. Speaking on the situation on Thursday, Union Minister Suresh Gopi clarified that despite falling crude oil prices in the international market, fuel prices in India cannot be reduced immediately.
It will take time for cheap oil to reach India
The Union Minister said that many important factors are involved in this process, which also includes the time taken for cheap oil to reach India from abroad. Minister of State for Petroleum, Natural Gas and Tourism Suresh Gopi said fuel prices were recently increased by about ₹3.94 per litre; However, this increase cannot be reversed immediately simply because of the fall in global crude oil prices.
Why does it take time to reduce prices? Talking to the media, the Union Minister explained the reason behind this and said that it will take time because cheap crude oil will have to be brought to India through the Strait of Hormuz. There is currently a lot of shipping traffic pressure in this area; Therefore, it will take time for the situation to return to normal. Its effect will be visible only then.