New Delhi: International oil prices rose after OPEC and its allies ignored India’s request to ease production controls. Saudi Arabia has asked New Delhi to use oil it bought at the lowest rate last year.
Brent crude, the most widely used measure, rose nearly 1 percent to $ 67.44 a barrel on Friday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC +, agreed not to stockpile in April in anticipation of it. more significant recovery in demand.
In the run-up to Thursday’s OPEC meeting, Indian Oil Minister Dharmendra Pradhan called on the producer group to make it easier for production offices to meet their promise of stable oil prices. He feels that rising international oil prices are hurting economic recovery and demand.
In response to a question about India’s pleas, Saudi Arabian President Prince Abdulaziz bin Salman told a news conference after the OPEC + decision on Thursday that New Delhi was one of the rude places they opposed last year. bought very cheap prices, must save.
‘As far as India is concerned, very simple. “I would ask my friend to withdraw from the cheap oil they bought in April, May and June (last year),” the Saudi minister said. “There is an opportunity cost not to withdraw it now.” In April-May 2020, India purchased 16.71 million barrels of crude and filled all three strategic petroleum reserves created in Visakhapatnam in Andhra Pradesh and Mangalore and Padur in Karnataka. According to Pradhan’s written response to a question in the Rajya Sabha on September 21, 2020, the average cost of the raw purchase was USD 19 per barrel.
Retail oil and diesel prices, which are already at an all-time high, must rise as oil companies decide to pass on the increase in international oil prices to consumers.
Petrol and diesel prices have remained unchanged over the past five years, and oil companies have not yet revised prices during the important meeting in 2017 and 2018 before the election in states such as Uttar Pradesh and Gujarat.
West Bengal, Tamil Nadu, Kerala, Pondicherry and Assam will go to the polls in the next few weeks.
Pradhan said earlier this week that India, where fuel demand is recovering until before the pandemic, wants reasonable and responsible oil prices.
India, the third largest oil importer and consumer in the world, supported the decision of the oil producer cartel OPEC and its allies to reduce production last year in light of the collapse in demand for oil due to the spread of COVID-19.
‘At that time, the producers, especially OPEC, assured the world market that demand would return by 2021 and that production would be as usual. But I am sorry to say that production will still be normal, ”he said. “If you do not supply properly when there is a gap in demand and the artificial supply, there is a price increase.” The average price of crude oil imports into India was less than $ 50 per barrel between April and December 2020 and comparable to the average rate of 2019 up to $ 60.47 in months thereafter, but the price of petrol and diesel is at historic highs as the government has done so far. not the tax it levied when prices fell almost a year back.
The record tax coupled with international tariffs returning to previously COVID levels of rising demand has led to petrol crossing at Rs 100 in some places in Rajasthan, Madhya Pradesh and Maharashtra.
Excise duty was increased by 13 and 16 euros per liter on petrol and diesel between March 2020 and May 2020 and now accounts for more than one third of the price of 91.17 liters per petrol in Delhi and 40 per cent of 81.47 per liter. liters of diesel.
The basket of crude oil India imported in February averaged $ 61.22 a barrel and $ 54.79 in January this year. It dropped to USD 19.90 in April last year and was between USD 40 and USD 49 during June and December.
India imports about 85 percent of its oil needs, and local tariffs are recorded at international prices.
OPEC +, which currently consumes about 7 million barrels a day of production – about 7 percent of the pre-pandemic stock – has helped develop a nearly 80 percent increase in the dated Brent benchmark since November. Saudi Arabia took a voluntary production saving of 1 million bpd in February and March.
Now you can get hand-picked stories by hand Telangana Today on Telegram every day. Click on the link to sign up.
Click to follow Telangana Today Facebook page and Twitter .
Source: Telangana Today