New Delhi: Hope of all concessions from the increase in fuel prices receded on Monday after a bitter dispute between Saudi Arabia and the UAE on Monday stopped the OPEC-Plus output agreement, raising the prospect of a more stringent inventory in the midst of recovering demand and pushing oil prices to jump higher.
Grouping left a meeting to bring two heavyweight classes on the same page without announcing a prospective date.
UAE opposes the Saudi proposal to extend the current agreement to 2022, with a gradual increase in production, and demands a higher baseline for its output quota.
Riyadh felt the global economic recovery was still weak and wanted the agreement to expand to keep the market balanced.
It also opposes the revision of the baseline for one member because it will ask others to demand the same.
Fallout directly is that there will be no increase in August supplies as expected.
It will tighten the market because demand gets traction, especially from the US, Europe, China and India.
The market reacts can be predicted as a global Benchmark of Brent Crude up 1% to almost $ 77 / barrel, the highest since 2018.
Some investment banks recently projected oil at $ 80 / barrel.
This means the price of the pump will continue to increase unless the center reduces the tax that has been raised last year.
The cost of purchasing Indian crude oil has increased from around $ 60 / barrel in January to almost $ 75.
As a result, gasoline is currently sold for RS 100 liters and Diesel towards Seabad in most countries, mostly helps with a sharp increase in tax last year.
The center has raised excise assignments of Rs 13 on gasoline and RS 16 on Diesel between March and May last year when oil prices collapsed due to a pandemic.
Two increases raised excise tasks of 65% on gasoline from Rs 19.98 to Rs 32.98 per liter and 79% on diesel from Rs 15.83 to RS 28.35.
This high tax strengthens the impact of the increase in crude oil prices, sends gasoline prices above Rs 100 per liter and diesel above Hospital 90 in most countries.