Owing to the rise in crude oil prices, a record rise in the petrol and diesel prices is regularly experienced across India in 2021. A record rise in the price of coal and natural gas is also seen amid an intensifying energy shortage. Why are fuel prices rising and how rising global fuel prices are impacting India?
As the world economy recovers, the global demand for crude oil has increased sharply. The Brent Crude price has risen to $85 per barrel, which is the highest since 2018. A year ago the price was $42.5 per barrel.
Despite the sharp increase in prices, OPEC+ group of oil producing countries have decided to increase the total crude oil supply by only 400,000 barrels per day for the month of November.
All the top oil producing countries like UAE, Saudi Arabia, Russia, Kuwait and Iraq will produce 14% less than the reference levels after the increase in November.
There was a sharp decline in demand in 2020 owing to the pandemic and the restrictions in global tr...