Petrol-Diesel Price / Expect big relief from diesel-petrol amid rising inflation prices will come down Know how

Petrol-Diesel Price | The people of the country, stricken by the continuous increase in the price of oil, gas and daily consumption items, are looking forward to relief from diesel-petrol. People facing inflation will get concession in the price of diesel and petrol in the coming days. This is because the Organization of the Oil Exporting Countries (OPEC Plus) and other allies including Russia have agreed to increase the production limit of crude oil. Due to this, the price of crude oil will fall in the global market and oil will become cheaper in the country as well.

OPEC and allies (OPEC Plus) had drastically cut their total output during the pandemic. But now the new decision will help in restoring the cuts made during Corona faster. OPEC is currently producing 4,32,000 barrels of crude oil per day. However, now the decision to increase this limit to 6,48,000 barrels per day from July has been taken by OPEC Plus. This decision has been taken at a time when the price of petrol in the US has reached a record high due to rising crude oil prices. The price of crude oil in the US has increased by 54 percent since the beginning of this year.

Oil prices will be low in the country

Due to the latest decision of the oil exporting countries, the supply of crude oil in the world will increase significantly compared to before and due to this its prices will also decrease in the global market. India imports 85 percent of its total crude oil requirement, so if crude oil is cheap, then the prices of petrol and diesel will definitely fall in India.

In the financial year 2021-22 (April 2021 to March 2022), India spent around US$ 119.2 billion on oil. Initially, the oil producing countries were adamant on not increasing their supply to make more profits. His argument was that during the time of the epidemic, he had suffered a lot by selling cheap crude oil, which could not be increased until the production was compensated. However, later he had to agree to this.

Crisis escalates after Russian attack on Ukraine

Significantly, after the Russian attack on Ukraine, European countries imposed sanctions against Russia, there has been a decrease in the production of crude oil. To meet this shortcoming, OPEC and allies were urged to increase the product. Russia is the third largest oil producer in the world, producing 8 million barrels of oil per day. Russia supplies crude oil to many countries of the world. Various sanctions on Russia and low productivity pushed up the prices in the global market.

Russian oil imports increased nine times

Despite various restrictions on Russian oil, India is continuously buying oil from Russia at cheap prices. According to a description by Kepler, in the midst of the Ukraine war, India's full emphasis is on buying cheap oil from Russia. India is buying oil from Russia at a record level. Indian imports of Russian oil have increased up to nine times compared to 12 months ago. Although till now India has been supplying only 2 percent of its total oil imports from Russia, in such a situation, the price of oil in India is decided by the global oil prices.

What is OPEC Plus?

It is a coalition of OPEC member states and 10 major non-OPEC oil exporting countries (Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan). OPEC has 14 member states (Iran, Iraq, Kuwait, United Arab Emirates, Saudi Arabia, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, Republic of the Congo, Angola, Ecuador and Venezuela). The purpose of OPEC Plus is to determine the supply and prices of oil around the world. OPEC Plus countries meet every month in Vienna. In this meeting, it is decided that how much crude oil is to be supplied in the international market.