Surat textile industry gets relief as crude oil prices drop by 17 per cent

A significant 17 per cent drop in crude oil prices has been recorded in the international market over the last 10 days, providing major relief to Surat's polyester industry, according to a report by Sandesh.

Crude oil prices were previously at the level of $114 per barrel, which have now decreased to $95 per barrel. Due to the cheaper crude oil, the production cost of raw materials required for the polyester industry has reduced. This situation has had a direct impact on softening the prices of polyester-based products.

Due to this reduction in prices, the price of polyester melt has decreased by ₹5 per kg. Additionally, a decrease of ₹3 per kg has been noted in the prices of yarn used in the textile industry. Thus, a reduction in prices has been observed on both the raw material and yarn fronts.

However, although this reduction is significant for Surat's textile industry, its actual impact is currently limited. Due to the Diwali festivals and ongoing holidays in the market, weavers have halted new purchases of yarn and raw materials. As operations in factories and weaving units are closed, new business deals have come to a standstill. For these reasons, the benefit of the reduced prices of raw materials and yarn is being delayed in reaching the weavers, and its full impact is not yet clearly visible in the market.

Petroleum, also known as crude oil, is a natural resource found as a yellowish-black liquid chemical mixture in geological formations, primarily consisting of hydrocarbons. The term petroleum is used for both naturally occurring unprocessed crude oil as well as petroleum products containing refined crude oil.