Due to the ongoing conflict in West Asia, the prices of crude oil are increasing across the world, due to which an increase in the prices of petrol and diesel has also been seen. In such a situation, experts are warning of deteriorating household budget. According to Manoranjan Sharma, Chief Economist of Infomerics Ratings, rising prices of petrol and diesel can put pressure on the budget of households. Speaking to ANI, Sharma said that after increasing tension in West Asia, there has been a huge jump in oil prices in the international market. Despite the government’s efforts to protect consumers, higher fuel prices have now become inevitable. Sharma said that the prices of petrol and diesel are increasing across the world. We all know that the world is going through a very turbulent time.
Crude oil becomes a problem
He said that the closure of the Strait of Hormuz has had a huge impact on global oil supply and has become a challenge for India. India is largely dependent on the import of crude oil coming through this route. He said that about 60 percent of the oil imported into India comes from the Strait of Hormuz. Referring to the surge in crude oil prices, Sharma said that when the conflict started, the oil price was around $67-68 per barrel, but since then it has increased rapidly. He said that when the war started, the price of oil was about $67 or $68 per barrel. Right now the price of oil in terms of Brent crude is $100 per barrel, and in terms of spot prices, the prices are around $120 or $130 per barrel.
Fuel prices increased deliberately
According to Sharma, although the government has tried to minimize the impact on consumers, there is a limit to how much protection can be provided against a global energy shock. He said that the government has tried to save the common man, but there is a limit to what the government can do. He further said that fuel prices have been raised “gradually and deliberately” over the past few weeks and warned that it would be difficult to avoid the impact on households. Sharma told ANI that obviously, this will impact the household budget, it will cause some difficulties to the families, but it is inevitable because it is a global issue which is not under the control of policy makers, planners and even those holding responsibilities in India.
It is necessary to move towards another option
Talking about long-term solutions to mitigate the impact on India of sudden fluctuations in oil prices, Sharma mentioned the country’s increasing focus on renewable energy and other sources of energy. He said that if you see the situation in India, we are continuously moving towards renewable energy. Renewable energy production in India accounts for about one-third of the total energy production, which is one of the best proportions of energy production in the world. However, he cautioned that it will take time to reduce dependence on imported fossil fuels. He further said that this is an ongoing process. This is not something that can be done overnight, and it will take some time to see results.
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