Petrol Prices could touch Rs. 80 per litre on rising Global Oil Rates
According to a report from credit rating agency CRISIL, the petrol prices could touch Rs. 80 if global oil rate surge to $ 60 per barrel. It will also have an impact on diesel prices and they are expected to touch Rs. 68 per litre. Notably, Global prices have surged to nearly $55 per barrel, following an agreement by the organization of Petroleum Exporting Countries to cut production.
According to reports, POEC, which accounts for nearly one –third of global output, had reached an agreement to cut output by 1.2 million barrels per day from January 1st. Notably, it is the first reduction since 2008. Global prices have already surged by 19 percent since then.
A meeting will take place in Vienna on December 10th in which Non – OPEC producers are expected to agree to add an output cut of 0.6 million barrels per day.
A report by CRISIL stated “The price of Brent Crude could increase $50-55 per barrel by 2017 following the move of OPEC, and if surges to $ 60, some experts believe, the price of petrol will witness a sharp rise and could even reach to Rs. 80 per litre.”
CRISIL on its part expects global crude price to remain between $50 -$55 per barrel for first half of calendar year 2017.
Notably, diesel and petrol prices are deregulated in India, which means they are linked to market rates. Oil marketing companies revise their prices every fortnight, depending on global oil rates and rupee’s move against dollar. India imports more than three – fourth of its crude oil requirement so apart from global prices, the final value of rupee is determined by the value of the rupee as well as the margins of oil marketing.