Bhubaneswar: In a development that could push the inflation and widen the current account deficit further, Global Oil prices hit their highest levels since 2014 owing to higher demand and production cut by the Organization of the Petroleum Exporting Countries (OPEC). The Brent crude oil has touched 69.19 a barrel, up by 37 cents from its last close.
Rising Oil prices may push the PSU oil marketing companies to increase petrol and Diesel prices which have already touched their highest levels since 2014 when the current Narendra Modi government came to power.
The Indian Oil minister Dharmenrdra Pradhan has already requested the state governments to reduce tax on Petroleum Products to give relief to the common consumers.
“ We have reduced taxes on Petrol and Diesels and it’s time for the states to reduce the taxes so that the burden on the consumers would be minimum” he said.
In 2014 global oil prices were well above the $100 mark. In an effort to prop up prices, OPEC together with Russia last November extended an output cut deal that was due to expire in March this year to cover all of 2018. The cuts, were mainly aimed at reducing a global supply overhang that had dogged oil markets since 2014