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Chilli CO2 oil is extracted from the fruits of chilli through the method of CO2 extraction method. However it might sound odd to read the benefits of chilli oil but yes, it has benefits and a lot of. It is the best option for persons who are dealing with the problem of skin rashes and itching. Further, various studies have shown that this oil can also help to promote the growth and regrowth of the hair by clearing the hair follicles. Extreme painful and inflammatory conditions, like in the case of arthritis, can also be relieved by massaging this oil in dilution.