Finance Secretary Arvind Mayaram today said declining crude oil price will have favourable implications for the country, but there was no need to be overly optimistic about it.
"We have to see going forward how the oil prices augur. Winter demand and geo political situations is there. We should not be overly optimistic at this time," he told reporters.
The declining oil prices in international market, he added was in "our interest".
The subdued oil prices are expected to have a favourable impact on the petroleum subsidy bill of the government which in turn will help bridging the fiscal deficit.
Benchmark Brent crude has fallen to almost four year low after the International Energy Agency said oil demand will expand this year at the slowest pace since 2009.
The drop in rates will result in the profit on sale of diesel, expanding from Rs 1.90 a litre calculated based on the average rate prevailing in the second half of September.
Oil marketing companies have effected cut in prices while government is likely to reduce price of diesel by about Rs 2.50 a litre after the model code of conduct is lifted on September 19.
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