India has now appealed to Saudi Arabia and other global oil producing countries to reduce production cuts over the steep rise in petrol and diesel prices. India has said that rising oil prices in the international market are adversely affecting economic recovery and demand.
New Delhi: India has now appealed to Saudi Arabia and other global oil producing countries to reduce production cuts over the steep rise in petrol and diesel prices.
India has said that rising oil prices in the international market are adversely affecting economic recovery and demand.
Petroleum Minister Dharmendra Pradhan says demand recovery should be given more priority than oil prices for at least the next few months,
Crude oil prices increased by production cuts
In fact, after a deal with OPEC countries, Saudi Arabia decided to cut production by 1 million barrels a day in February and March, which has since seen a boil in international oil prices. That is why crude oil crossed $63 a barrel, the highest level of more than a year, with petrol crossing the Rs 100 per litre mark in India.
‘Decline in demand affects economy’
“The rising crude oil prices over the past few weeks have seen a decline in demand, which is adversely affecting the economy,” Dharmendra Pradhan said. Speaking at the 11th IEA IEF OPEC Symposium on Prime Energy Scenario.
He said India has controlled the inflation pressure on several fronts, but nothing can be done on the price rise caused by crude oil.
“Other developing countries will also be affected”
“The rise in prices is affecting India’s consumers, which is also affecting demand growth, which will adversely affect economic growth not only in India but also in other developing countries,” Dharmendra Pradhan said.
Petrol sales reached the covid east level six months ago, again below the earlier level of the epidemic in the first part of February.
‘Need to take a balanced stance’
He needs consumption-based recovery. Referring to the production cuts, he said the collective interest of both producer and consumer countries is in increasing it. He endorsed the joint decision in April last year to cut production of major oil producing countries in view of the reduction in demand due to the Kovid epidemic.
He said the time has come to increase it as it is in the interest of both producer and consumer countries. The prime minister said that there is a need to take a balanced stand at this time.