As the US dollar is getting stronger day by day, the price of crude oil has fallen sharply in the international market. The price of Brent crude oil to be purchased by Nepal on Sunday is set at $86.79 per barrel. This is the lowest since January 10, 2078 (24 animals).
According to the international media, the price of crude oil fell by 8 dollars per barrel within 11 days. “The Economic Times” reported that the price of oil has dropped by $4 per barrel only since Friday.
According to Trending Economy, the price of fuel such as WTI, Brent, Murban and natural gas has been cheaper by at least 4 and a half dollars per barrel since Thursday night.
The international media claims that the price of oil has fallen after OPEC and other countries formally agreed to increase crude oil production.
It is said that another reason for the impact on the price of oil is that the central banks of influential countries in the world, including the United States, have increased interest rates. Due to the interest rate, the value of the dollar has become more influential and the price of oil has been affected.
When the price of crude oil is cheap, the cost of refined petroleum products imported by Nepal is also cheap. The prices of petroleum products, which have skyrocketed due to covid, are becoming cheaper for the past few months.
Nepal has been buying fuel from the Indian Oil Corporation at a reduced price for the last 2 months. Even though the price of fuel has come down, the Oil Corporation has not reduced the consumer price of fuel like diesel, petrol, cooking gas.