Global factors! Why Petrol and diesel prices continue to soar, when and how common man can expect relief-EXPLAINED

Why Petrol and diesel prices are increasing? Petrol and diesel prices continue to soar with no limit in sight. It has breached Rs 100-mark in some states. After Rajasthan, petrol price on Thursday crossed the ₹100 per litre mark in Madhya Pradesh when fuel rates were increased for the 10th day in a row. The increase in fuel prices even continued on Saturday for the 12th consecutive day. 

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With no letdown in petrol and diesel rates, Mrituenjay, Commodity Editor and Anchor at Zee Business, explains the reason behind this hike in fuel prices.  

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There are several reasons such as huge tax imposed by the Centre and state governments, affecting the petrol and diesel prices, said Mrituenjay. Besides, there are global factors too behind continuous increase in fuel prices, he said. " Brent crude price in the international market has gone as high as $65 per barrel. This crude rate is the highest in the last 13 months. The reason behind this jump in crude oil is due to America, which is one of the biggest producers of crude oil, facing problem with the supply. There is huge dip witnessed in the US," he said. 

Mrituenjay said as per experts say 40 per cent of crude production in Texas has been hit due to unfavorable climatic condition. Apparently, due to extreme cold condition pipeline in Texas have frozen and employees are unable to work in this hostile condition. which This is affecting the supply, he said.  

Another big reason is that OPEC (Organization of the Petroleum Exporting Countries), which supplies almost 40 per cent of crude to the world, has been also facing supply issue. "OPEC and non-OPEC countries have clearly hinted that supplies will continue to be affected till April," he said. 

Third reason is increase in demand for crude by many countries, affecting the prices inversely. 

"Experts are of the opinion that there will be no relief prices of petrol and diesel at least from International market. Any relief is only possible when state and Centre decide to cut tax in domestic market," he added.