Drop in oil prices reduces India's import cost by Rs180 a barrel

The continuing fall in global crude oil prices has made the biggest item in India's import list cheaper by Rs180 a barrel, official statistics showed today.

Data published by the ministry of petroleum and natural gas shows that the price per barrel of crude imported by India as on 5 January was Rs3266.49 as against Rs 3446.14 per barrel on 2 January this year.

The rupee has fallen by Re0.10 over these three days but it didn't stem the fall in crude prices for Indian imports.

The steep fall in crude prices can be gauged from the fact that the crude oil price of Indian share was $58.12 in the fortnight from 12-29 December, which amounted to Rs3676.67 per barrel at the exchange rate of 63.26 to a dollar.

The US crude is currently trading below $50 per barrel mark. The crude has been falling on the concerns of oversupply of US shale-gas. In an OPEC meeting last November, Saudi Arabia, the largest oil producer ruled out any cuts in production.