The direct impact of recent major developments in global politics and international markets is now visible on crude oil prices. There has been a huge fall in the prices of crude oil in the global market after the change in political equation in America and the shock in the midterm elections or the political opponents of Donald Trump. The prices of Brent Crude oil, which were touching the sky recently, have come down significantly. This sudden decline has brought a sigh of relief for a major energy importing country like India, because India imports most of its crude oil requirement from abroad. In such a situation, the question has become important that how much this softening will actually benefit the Indian economy and the general public. The sharp fall in crude oil prices and the current situation According to international market data, changes in the geopolitical and American political scenario have had a rapid impact on the energy market. Brent crude oil, which was trading at a high level of $ 118 per barrel till some time ago, has now fallen to around $ 102 to 104 per barrel. Experts believe that due to political changes in America and possible diplomatic talks, the uncertainties regarding supply in the market have reduced a bit, the direct effect of which has come out in the form of correction in prices. This sharp fall in oil prices is considered to be the biggest recession in the last few weeks, which has brought great relief to the countries struggling with inflationary pressure at the global level. What will be its direct impact and economic benefits on India? India is the world's third largest energy consumer and crude oil importing country, which imports about 85 percent of its total consumption from outside. In such a situation, this huge fall in crude oil prices will have a direct and positive impact on India's current account deficit. When crude is cheaper in the international market, India's import bill reduces significantly, thereby reducing the pressure on the government exchequer. Apart from this, the country's currency Indian Rupee also helps in strengthening against the dollar, as there is some reduction in the huge demand for foreign currency. Which sectors and industries will get the most relief? Due to the decline in crude oil prices, many major sectors of the domestic market are expected to get a direct boost. Among these, aviation sector is at the forefront, because a large part of the total expenditure of airlines goes in purchasing Air Turbine Fuel (ATF), which is directly linked to crude. Due to cheap oil, the profits of airline companies will increase and air travel can become economical. Apart from this, the production cost of oil marketing companies (OMCs), paint manufacturing companies, tire industry and chemical sector will also reduce, due to which the margins of these industries will improve. Will the general public get the benefit of cheaper prices of petrol and diesel? The biggest question is whether the impact of the breakdown of crude oil in the international market will also be visible on the retail prices of petrol and diesel in India? Economic experts say that although the profits of oil marketing companies will improve due to cheaper imports, the benefit of this to the common consumers will entirely depend on what kind of revision the country's oil companies and the government make in the excise duty or retail prices. Despite this, on the macroeconomic front, with inflation under control and transportation costs falling, there is a strong possibility of prices of everyday consumer goods remaining stable, which is a big relief news for the general public of the country.
