Amazing as it may seem, both experts and the laymen see in crashing global crude prices, an opportunity for the ruling party to make electoral gains. International oil prices, which have been going down since November, are finally reflecting in the fuel prices after a short time lag.
On Wednesday, the petrol price in Delhi was at a one-year low of Rs 69.79 a litre, while diesel slipped to Rs 63.93 a litre. With overseas crude trending downwards, domestic fuel prices are only expected to go down further as oil marketing companies (OMCs) will pass on their gains to consumers.
So in a sense, a beleaguered government at the receiving end of repeated opposition jibes and public despair could finally heave a sigh of relief. While it would be premature to conclude that a dip in oil prices will automatically beef up the political prospects of the ruling party, there is no doubt that the hapless public, groaning under the onslaught of spiralling inflation, would breath easier.
In the best case, what the government can do is to hope for correction as the lowering of crude oil prices is likely to reflect in petroleum products. Read More