CRISlL Projects Rise In Petrol, Diesel Prices After OPEC’s Move To Cut Crude Oil Production
CRISlL Projects Rise In Petrol, Diesel Prices After OPEC’s Move To Cut Crude Oil ProductionAn Essar Oil refinery at Vadinar village, near Jamnagar. Photo credit: SAM PANTHAKY/AFP/Getty Images

The price of petrol is expected to rise 5-8 per cent and that of diesel by 6-8 per cent over the next three to four months after last week's decision by the Organisation of Petroleum Exporting Countries (OPEC) to cut crude oil production by 1.2 million barrels per day (mpbd), CRISIL Research said on Tuesday (6 December).

The price of Brent crude could increase to $50-55 per barrel by March 2017 following Opec’s move, and if it surges to $60 as some believe, the price of petrol could touch Rs 80 and diesel Rs 68 per litre. A cut in production always lifts prices, but the success of the Opec agreement depends on adherence.

"As for domestic demand, we expect demonetisation and the consequent reduction in economic growth to curb usage, but things would rebound once currency in circulation reverts to normal levels," it said.

According to CRISIL Research, globally, oversupply is estimated at 1.4-1.7 mbpd at present, which means the OPEC production cut would balance out demand and supply in the second half of 2017.

With inputs from IANS

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber