Petrol and diesel prices may increase in the coming days. OPEC and its partner group of oil producing countries have extended production cuts till April. In such a situation, if the central and state governments do not reduce the tax, then fuel prices may increase further. Some cities are already selling a liter of petrol beyond 100 rupees.
Decision to continue production cuts
OPEC and its partner countries have decided to maintain their current levels of cuts in oil production, while fuel demand has reached pre-covid levels. This led to a jump in crude oil prices in the futures market. Brent crude rose 4.2%, or $ 2.67 a barrel, to 66.74 on Thursday. Earlier, in January 2020 it was at the level of $ 67.75 per barrel. In the US market, crude oil futures climbed 5.6% to reach $ 64.70 a barrel on Thursday.
Saudi will continue to cut production, but Russia and Kazakhstan may increase. In
an online meeting of OPEC countries led by Saudi Arabia and OPEC’s partner oil producing countries led by Russia, it was decided to retain the production cuts. Saudi Arabia, the world’s largest oil producer, will continue to cut 1 million barrels per day at least until April. However, Russia and Kazakhstan may increase oil production slightly.
Demand to bring petrol-diesel under the ambit of GST
Shortly before this meeting, Petroleum Minister Dharmendra Pradhan urged OPEC and other countries to once again fulfill the promise of lifting restrictions on crude oil production and to keep prices stable. did. There is a demand in the country to bring petrol and diesel under the purview of GST, due to which the government is already under pressure. According to SBI economists, petrol will come at a price of Rs 75 per liter and diesel at Rs 68 after coming under the purview of GST.
An increase of $ 10 per barrel in crude oil prices was predicted by
investment bank Goldman Sash last month on crude oil prices . According to Sash, by July this year, the consumption of crude oil will surpass the pre-Kovid level. This is because industrial activity has been steadily increasing amid a decline in Corona cases, while oil production cuts have continued to continue on behalf of the oil producing group OPEC + and Iran. In such a situation, crude oil can be more expensive by $ 10 per barrel.