A direct fall out of contraction in economic activity has been a sharp fall in oil prices. The analysis is based on a comparison of petrol and diesel prices in Delhi with the rupee equivalent of Brent crude prices. It shows a sharp increase in petrol-diesel prices as a multiple of Brent crude prices at March-end. However, their value as a multiple of international oil prices has gone down from the abnormally high levels in March and April. The daily revision in domestic fuel prices by oil companies restarted from June 6 after a gap of more than two months (the last daily revision had been on 16 March).

Source: Hindustan Times June 23, 2020 23:26 UTC