This is bigger than tax cut announced in the budget.
We consume around 4.6 million barrels of oil daily. So when oil prices fall, it’s a big deal for our economy, your wallet and equity markets.
What’s happening now?
When the FY 26 Union Budget was presented, oil was expected to cost about $74 per barrel.
Today, Brent crude has dropped to around $65—a fall of $9 per barrel.
Through the year, its estimated that we will import 1,450 million barrels of crude oil.
How much could this save us?
If the dollar-rupee rate stays the same (₹86 to $1), this price drop means:
Annual savings of about ₹1.12 lakh crore (~$14 billion).
To put it in perspective, this is actually more than the income tax cuts announced in the budget.
Lower oil prices can help in gdp growth and reduce deficit. This is great for equity investors.
The hope is these savings will be used wisely to benefit our daily expenses.
