“Sliding Oil Prices and Fuel Price Cuts”

• Global crude oil prices are falling below $70 a barrel, indicating a strong case for a fuel price cut.
• Cheaper petrol and diesel could slow inflation, facilitate interest rate cuts, and increase consumption.
• Despite deregulation, fuel prices have not been adjusted in line with supply price trends for several years.
• Suman Chowdhury, ED and chief economist at Acuité Ratings & Research, suggests a strong case for another fuel price cut if global crude prices remain below $75 per barrel.
• Bank of Baroda chief economist Madan Sabnavis suggests softening oil prices will help control India’s import bill and stabilize the rupee.