Conflict between UAE and Saudi Arabia, petrol-diesel prices may still rise

New Delhi, July 6, 2021, Tuesday

At a time when petrol and diesel prices are skyrocketing, there is no sign of relief at present. Worse still, petrol and diesel prices will continue to rise in the coming days.

Because there is a stalemate over a deal between Saudi Arabia and the UAE. Which is having an impact on oil prices. Petrol price was hiked by 35 paise on Monday.

The UAE on Sunday opposed the extension of an agreement by oil-producing group OPEC as well as allied countries to cut oil production. Saudi Arabia, on the other hand, has proposed extending the deal to 2022. The UAE has called the proposal an injustice to itself.

The UAE wants to increase oil production so that it can compete with Saudi Arabia. The UAE believes that more production is needed given the market. Corona caused a drop in global demand for oil last year. To balance this, the oil-producing countries agreed to cut production.

However, no definite decision could be taken at the meeting of OPEC and allied countries held on Sunday. No agreement has been reached to increase oil production between August and October. It is unknown at this time what he will do after leaving the post. Which has sent a negative message to the oil market. As a result, oil prices have risen. Oil is currently priced at 77 77 a barrel. Which is the highest level since 2018. Some banks estimate that the price of oil could reach 80 80 a barrel.

In some states, petrol prices have already touched Rs 100 per liter due to rising oil prices. At present, the government is levying excise duty of Rs 32.98 on petrol and Rs 28.35 on diesel. Which is increasing the government's earnings but thus the man is annoyed. In 36 days, petrol prices have gone up by Rs 9.54 per liter.