New Delhi, December 26: Brent crude oil prices continue to crumble, reaching below $50 per barrel for the first time since June 2017. The downslide in rates is likely to provide an opportunity for the importing nations to improve their fiscal deficit and bring inflation under control. The decelerating prices are likely to further bring down petrol and diesel rates in India.

Since October 3 this year, the brent crude has lost nearly 42 per cent of its monetary value. The devaluation was triggered by overproduction, combined with a reduction in demand due to a turmoil in global economy. The latter leads to a massive reduction in construction activities in the importing world -- which in turn leads to a drop in demand. Delhi Records Lowest Petrol Price After January 2018.

The crude is currently hovering around $50, marginally improving today to $51.17. The petrol and diesel rates, which are based on the 15-day average of brent crude oil prices, have dropped by nearly Rs 15 per litre in India over the past two months.

The petrol rate in Delhi on Wednesday (December 26) was Rs 69.79 per litre, whereas, the fuel valued Rs 75.41 in Mumbai. Per litre of diesel was priced at Rs 63.83 and Rs 66.79 in Delhi and Mumbai, respectively.

The deflation in international oil prices has come as a shot in the arm for the Narendra Modi-led central government, which is seeking re-election in the Lok Sabha polls expected to be held between March-May next year.

(The above story first appeared on LatestLY on Dec 26, 2018 05:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).