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Fuel prices set to skyrocket as OPEC + expands production cuts

New Delhi: Thursday’s major oil-producing countries OPEC + Group extended its current production cuts to April. This could spike fuel prices towards a new record, with gasoline reaching Rs 100 per liter. Unless the country and taxes are reduced.
This decision shattered the government’s hopes for higher production from next month, which will ease the upward pressure on pump prices and the need for tax cuts.
Hours before the OPEC + Ministerial Meeting on Thursday, Petroleum Minister Dharmendra Pradan called on OPEC to “fulfill its price stability promise” by increasing output. Saudi Arabia’s Petroleum Minister Abdulaziz bin Salman al-Saud and OPEC Secretary-General Mohammed Sanusi Balkind addressed the 11th IEA, IEF, OPEC Symposium last month to keep prices high. He said that such reductions would have a negative impact on demand recovery.
However, government agencies reported that OPEC’s linchpins Saudi Arabia and Russia were another heavyweight in the expanded group, supporting production rollovers as members sought “cautious optimism.” .. In the general view, the recovery in demand remained fragile, as Covid-19 still cast a long shadow on demand.
Oil prices have risen to their highest levels in almost a year, just below $ 65 a barrel. At the same time, gasoline prices have exceeded 100 rupees per liter in some cities and are rushing towards this mark in other cities, including Mumbai at 97.57 rupees on Thursday. Diesel was 88.60 rupees.
High pump prices have aroused public anger and are calling for tax cuts by the center. Rajasthan, Assam, Meghalaya and West Bengal last month reduced their VAT from 1 rupee to 7 rupees per liter. However, the center and other states have not been moved. Currently, taxes account for more than 60% of pump prices.
Instead, the center has transferred responsibility for the former government and OPEC + production cuts. The center will charge gasoline sales tax of 13 rupees per liter on diesel on March 16 and May 5 when crude oil prices plummeted as demand evaporates after Covid-19 closed its economy. The consumption tax has been raised by 16 rupees.
Fuel retailers adjusted the excise tax increase against the rise in profit margins due to low oil prices and did not adjust pump prices. However, as the state followed the VAT hike, retailers raised prices. Still, consumers were largely unaffected, as only important service vehicles were on the road.

Fuel prices set to skyrocket as OPEC + expands production cuts

Source link Fuel prices set to skyrocket as OPEC + expands production cuts

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