Jagran Bureau, New Delhi. The general public can expect a further fall in the prices of petroleum products in the next few days. India has joined hands with the US, Japan, South Korea and China to put pressure on oil producing countries which are reluctant to reduce crude oil prices. All these countries have decided to use a part of the crude oil in their strategic reserves for domestic use. That is, crude oil will not be purchased from the market, but the crude stored for special conditions will be used. For the first time, India will issue five million barrels of crude under this item. This is likely to bring down crude oil prices. Last month, the crude price was $ 86 a barrel, which is now around $ 79 a barrel.

Announcing this, the Government of India said that the price of hydrocarbons in the international market should be properly fixed. India has always been opposed to the artificial way in which oil producing countries fix the price by ignoring the demand. Hours after India’s decision, US President Joe Biden also announced the release of 50 million barrels from its strategic reserves. America has also said that it is taking a collective decision in this regard in consultation with India, Japan, China. This step has been taken after OPEC countries did not accept the appeal to increase production.

Crude price may come up to $ 72 per barrel

This is the first time that the world’s biggest crude buyers such as India, the US, Japan, China, South Korea and the UK have unanimously adopted a strategy to put pressure on the Organization of the Oil Producing Countries (OPEC). According to experts, this decision will not have much impact on the demand in the crude market, but due to the environment created in the market, the price of crude can come down to $ 72 per barrel. There is a demand from crude buying countries that OPEC countries should try to keep crude prices stable around $ 70. If crude becomes more expensive than this, then it will affect the pace of recovery in the global economy after the corona epidemic. The effect of the rise in the prices of petro products is visible on America, China, India where the inflation rate is very high. The Federal Bank of America has also indicated to increase interest rates in view of inflation. RBI is also continuously warning about inflation.

Three strategic reserves to keep crude in the country

India has strategic reserves at Visakhapatnam (Andhra Pradesh), Mangaluru (Karnataka) and Padur (Karnataka). A total of 38 million tonnes of crude oil can be stored here. Of this, India will currently use 5 million tonnes, which is roughly equal to its daily consumption. With this decision of the government, the domestic public is expected to get a new relief in the prices of petrol and diesel. Recently, the central government had brought some relief to the customers by cutting the special excise duty on petrol and diesel by Rs 5 and Rs 10 per liter respectively.

No country has given date

No country, including India, has so far told when crude oil from strategic reserves will be released for general use. China and Japan have not yet announced any crude release, but have supported the initiative. Similarly, South Korea has not yet disclosed how much oil it will release from its strategic reserves. The UK has not yet commented on this.

US gas price 50 percent higher than last year

The current price of gas in the US is $3.40 per gallon (3.785 litres). This is an increase of 50 percent as compared to a year ago. US President Biden’s approval rating has fallen due to inflation. Since mid-term elections are to be held there next year, due to this the present government is also worried.

Edited By: Monika Minal