'Falling Crude Price to Help Lift Economy'

Published: 16th October 2014 06:00 AM  |   Last Updated: 15th October 2014 11:32 PM   |  A+A-

NEW DELHI: The softening of global crude oil (Brent) price that is now trading at $88 per barrel will have a favourable effect for the economy, Finance Secretary Arvind Mayaram said here on Wednesday, but cautioned that there was no need to be overly optimistic.

Arvind-Mayaram.jpgAlso with the Wholesale Price Index (WPI) and Consumer Price Index declining favourably and petrol prices being slashed by Rs 1 on Tuesday and the possibility of decontrol of diesel prices after state election in Haryana and Maharashtra are expected to give a further fillip to the economy.

“We have to see going forward how the oil prices augur. Winter demand and geo political situations is there. We should not be overly optimistic at this time,” the finance secretary told reporters.

“The declining oil prices in international market,” Mayaram said “was in our interest”.

The subdued oil prices are expected to have a favourable impact on the petroleum subsidy bill of the government which in turn will help bridging the fiscal deficit.

Benchmark Brent crude has fallen to almost four-year low after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009.

The drop in rates will result in the profit on sale of diesel, expanding from `1.90 a litre calculated based on the average rate prevailing in the second half of September.

Oil marketing companies have effected cut in prices while government is likely to reduce price of diesel by about `2.50 a litre after the model code of conduct is lifted on September 19.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp