‘Now even the government cannot do anything…’ Veteran economist gave the biggest statement on the inflation of petrol and diesel

If you are thinking that managing the household budget is now going to be easy, then wait! The ongoing situation of heavy tension and war in West Asia has shaken the entire world. Now this is going to have a direct impact on the fuel in your kitchen and vehicle. Due to the increasing conflict in West Asia, the prices of crude oil are continuously skyrocketing in the international market, due to which a big jump in the prices of petrol and diesel is expected in the coming days. Meanwhile, a big economic giant has given a very scary warning that the budget of crores of families of the country will be completely ruined.

According to Manoranjan Sharma, Chief Economist of Infomerics Ratings, the continuously rising prices of petrol and diesel are going to put huge pressure on the budget of Indian families. In a special conversation with news agency ANI, Sharma said that after the deepening of tension in West Asia, oil prices have gone out of control in the global market. He warned in clear words that despite all the efforts of the government, it has now become impossible to save the common customers from this inflation and higher fuel prices have now become inevitable (which cannot be avoided).

After all, why did crude oil become the biggest problem for the country?

Manoranjan Sharma has revealed the biggest reason behind this crisis. He said that due to the obstructions created in the Strait of Hormuz, the global oil supply chain has completely collapsed. This path has become the biggest challenge for India at this time. In fact, India imports a large part of its needs through this sea route.

According to statistics, about 60 percent of the total crude oil coming to India from outside reaches the country through the Strait of Hormuz alone. In such a situation, the crisis on this route directly means a huge shortage of oil in India and a huge increase in its prices.

Oil reached $130 straight from $67, all records broken

Referring to this scary rise in the prices of crude oil, Sharma said that when this conflict started, the price of crude oil in the international market was hovering around only 67 to 68 dollars per barrel. But as the war dragged on, there was such a fire that all the old records were destroyed.

At present, in case of Brent crude, the price of oil has crossed $ 100 per barrel. Not only this, if we talk about spot prices (spot market), then this figure has reached a very dangerous level of $ 120 to $ 130 per barrel. For this reason, speculations about increase in the prices of petrol and diesel in the domestic market are continuously proving correct.

Government has also become helpless, prices are being increased after careful consideration

Economic expert Manoranjan Sharma believes that till now the Central Government has tried its best to protect the common man from the global energy shock, but the government also has a limited capacity in the face of international pressure. Even if the government wants to, it cannot keep oil companies in loss forever.

He further explained that over the past few weeks, fuel prices in the country have been increased “gradually and very thoughtfully” so that the public does not face a big shock all at once. But now the water has started passing above the heads, so it is sure to have a direct and severe impact on the budget of the houses. Families will have to face some difficulties because this is such a global issue which is completely out of the control of the policy makers, planners and even the government of the country.

Will renewable energy become India’s new support?

Sharma also talked about the long-term measures to save India from this serious oil crisis and sudden fluctuations. He said that India is now rapidly moving away from traditional fuels towards renewable energy and other modern energy options, which is a great step.

At present, renewable energy production in India accounts for almost one-third of the total energy production, which is considered to be one of the best proportions of energy production in the world. However, he also cautioned the general public that it will take a long time for the country to completely eliminate its dependence on foreign fossil fuels (such as petrol, diesel and gas). This is an ongoing process, which cannot do miracles overnight and it will take some time to see the results on the ground. Till then the countrymen will have to be prepared to face this global inflation.