Saudi Arabia's strength came out of falling oil prices, will its decision increase the price of petrol and diesel in India?

The continuous falling prices of crude oil in the international market has made Saudi Arabia helpless. That's why now he has taken a big decision, the effect of which will be visible from October. Can petrol-diesel become expensive in India due to this?

India imports most of its petroleum needs. Recently, it bought a large amount of crude oil from Russia at a discount rate, but its benefit has hardly reached the common man. At the same time, Iraq, Iran and Saudi Arabia also have a major share in India's imports. Meanwhile, troubled by the falling prices of crude oil, Saudi Arabia has taken a big decision to reduce crude oil production, so will it affect petrol-diesel in India?

Saudi Arabia may cut its oil production by 10 barrels per day. This will be the third consecutive month in October, when Saudi Arabia will cut its crude oil production. The reason for this is the uncertainty regarding the supply of crude oil in the market.

Consensus is made in OPEC+ countries

A meeting of 'OPEC Plus', an organization of crude oil producing countries, was held in June. In this, concern was expressed about the falling prices of crude oil. It has been agreed among all the countries to reduce its supply by the end of 2024, so that the falling prices of crude can be controlled. Even Russia agrees with this. At the same time, Saudi Arabia has separately announced to reduce its production more. That's why its oil production has now come down to the level of 9 million barrels per day, which is the lowest level in many years.

At the same time, Russia has also talked about reducing the production of crude oil by 3 lakh barrels per day in September. The effect of continuous production cuts of Saudi Arabia and Russia, the world's two largest oil producing countries, is also visible. In July, the price of Brent crude oil had increased by 14 percent as compared to June. This was the biggest jump in prices after January 2022.

Will there be an impact on petroleum prices in India?

India is the third largest petroleum importer in the world. That's why the price of crude oil has an impact on its import bill. Although there are many countries in India's import basket and it is not dependent on any one country. That's why it is easy for India to control the prices of petrol and diesel in the domestic market despite the increase or decrease in the prices of crude oil. However, due to increase in the prices of crude oil, the price of petrol and diesel in India is expected to increase.

On the other hand, some experts believe that 2023 and 2024 are election years in the country. That's why the government can try to keep their prices under control. For this, the government can cut excise duty on petrol and diesel. Petrol and diesel prices have remained stable in India for more than a year.