Boost for govt spending on welfare, infrastructure as crude prices plunge

Crude oil futures dipped to the lowest this week in nearly three years, wiping out all the gains made earlier this year after seasonal demand for crude from China did not materialise as expected

A sharp fall in global crude benchmarks will reduce costs of fuel, both oil and gas, to Indian consumers if State-run oil companies choose to pass them on. Alternatively, it will help Indian Oil, Bharat Petroleum and Hindustan Petroleum boost profitability at the pump even as the margins from processing crude into fuels decline.

The plunge in crude oil levels to near three-year lows this week at $70/bbl, a $20/bbl decline in five months, will also come as a relief to a government which is boosting spending on welfare and infrastructure.
 

“Low oil prices can help lift the