Crude Oil in the international markets slumped once again hitting a 5-year low, raising the prospects of another diesel and petrol price cuts in India.

Petrol and diesel prices in India depends on international crude prices as we import 70 per cent of our crude oil requirements. When Crude Oil prices fall in the international market petrol and diesel prices fall, as they are linked to international prices.

Brent crude also dropped 4 percent in the previous session, a level not seen since Oct 2009 and was last hovering around the $66 a barrel mark.

In India oil marketing firms import crude oil and refine them into diesel and petrol. When their cost of importing crude oil reduces the cost of petrol and diesel at the petrol bunk reduces and they tend to reduce the prices of these products. Another factor in diesel and petrol prices is the rupee, which, if remains steady raises hopes for a cut.

The international crude oil price of Indian Basket was US$ 66.98 per barrel (bbl) on Dec 5, 2014. This was lower than the price of US$ 67.98 per bbl on previous publishing on Dec 4, 2014. Data to be released today might show a further drop.

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