Petroleum now costs Rs 83 per liter, soars at 2-year high

On Saturday, in Delhi, petrol prices reached the Rs 83 per litre mark for the first time consecutively in two years after a rally in international oil prices forced the 13th increase in rates in the last fortnight.

Subsequently, on Saturday, the petrol price was raised by 27 paise per liter and diesel by 25 paise according to a price notification of oil marketing companies. Moreover, Petrol prices rose from Rs 82.86 to Rs 83.13, and Diesel rates rose from Rs 73.07 to Rs 73.32 per litre.

This raise is marked as the highest rate for petrol and diesel since September 2018, continuing the 13th increase in rates since November 20 when oil companies resumed daily price revision after nearly a two-month hiatus.

Around October end 2020, Brent crude oil was up by 34 percent, and it hopes that the COVID-19 vaccine could lead to safe recovery.

The oil price surge is despite a second wave of COVID-19 in Europe and the US (which has led to demand recovery reversal), and surge in Libyan oil output from 0.1 million barrels per day (BPD) to 1.25 million BPD.

Oil cartel OPEC alongside Russia is deciding to raise productivity from January 2021 to meet the global supply deficit in the first quarter of 2021. Thus, OPEC+ has done its part to prevent supply surplus until the vaccine boots demand.

Public sector oil marketing companies like Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd have decided to revise rates of petrol and diesel daily based on benchmark international oil price and foreign exchange rate.

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