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Monday, June 7, 2021

Here’s why fuel prices in India may not come down in a big way ⁠— at least not this year - Business Insider India

BCCL

The Organisation of Petroleum Exporting Countries (OPEC) has agreed to open up the supply of oil, but demand is likely to surge in step as economic activity gets restored.

“We expect the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months,” said the bank in its report, citing acceleration of vaccinations in Europe and an unleashing of pent-up travel demand as summer kicks in.

As per oil ministry's Petroleum Planning and Analysis Cell (PPAC) India consumed 194.63 million tonnes of petroleum products in 2020-21 as compared with 214.12 million tonnes demand in the previous year.

The government imposed a nationwide lockdown due to the pandemic, which caused the fuel consumption to contract for the first time since 1998-99. However, as the lockdown got lifted and industrial activity resumed, fuel consumption was seen rising again and the demand is expected to rise nearly 10% in the fiscal year beginning April 1.

“We expect the biggest jump in oil demand ever, a 5.2 million barrels per day (bpd) rise over the next six months,” said the bank in its report, citing acceleration of vaccinations in Europe and an unleashing of pent-up travel demand as summer kicks in.

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Here’s why fuel prices in India may not come down in a big way ⁠— at least not this year - Business Insider India
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