As a result of human arrogance, due to wars between America, Iran, Israel and Ukraine, Russia, the prices of petroleum products have increased in almost every country of the world. In the same context, due to rising prices of petrol and diesel in India, the Indian middle class economy and social structure has been affected in a big way. The increasing geopolitical tensions, wars and power struggles at the global level have the greatest impact on ordinary citizens.
US-Iran tensions, the Russia-Ukraine war and conflicts involving Israel in the Middle East have destabilized global energy markets. The increase in the prices of petroleum products has affected the economy of almost every country. India also did not remain untouched by this. The rising prices of petrol, diesel and cooking gas have deeply affected the economic and social structure of the Indian middle class in particular.
India imports crude oil on a large scale to meet its energy requirements. The increase in oil prices in the international market has a direct impact on the domestic market. Petrol and diesel are not just a means of running vehicles, but they are the backbone of the entire economic activity. Transport, agriculture, industry, trade and service sectors are almost all directly or indirectly dependent on them.
The increase in diesel prices has the biggest impact on the transport sector. Most of the freight in the country is transported through trucks. When diesel is expensive, transportation costs increase. The result is that the prices of food grains, fruits and vegetables, milk, pulses, construction materials and items of daily use automatically start increasing. Traders ultimately pass on the additional costs to consumers. In this way a cycle of inflation begins, from which the common citizen cannot escape.
The Indian middle class is already struggling with challenges related to education, health, housing and employment. The rising prices of petroleum products have further disturbed the balance of its monthly income and expenditure. For families who have private vehicles, the cost of traveling to office, school and other essential journeys has increased. The increase in the prices of LPG has affected the household budget. As a result families have to compromise between their needs and desires.
The social impact of inflation is no less serious. When income is stable and expenses keep increasing, stress starts increasing in families. Economic stress adversely affects family relationships, social participation and mental health. The middle class, which is considered an important basis for the stability and development of the society, is itself surrounded by insecurity and worries about the future.
The agriculture sector has also been affected by this. Farming has become expensive due to the increase in the cost of diesel-powered pumps, tractors and agricultural equipment. Farmers want fair prices for their produce as production costs increase, putting additional pressure on food prices in the market. Thus, the effect of inflation is visible from farm to plate.
Economists have long said that energy prices are an important indicator of the health of any economy. Former Prime Minister of India and famous economist Manmohan Singh had on many occasions described energy security as essential for economic stability. At the same time, Nobel laureate in economics Amartya Sen has also linked development not only to income growth but also to the quality of life. If rising inflation affects the basic needs of people, the real benefits of development do not reach the society.
What is needed today is to promote dialogue and cooperation at the global level instead of the politics of war and conflict. Also, India will have to make more efforts towards alternative energy sources, public transport system and energy self-reliance. Dependence on petroleum can be reduced by promoting solar energy, biofuels and electric vehicles.
Rising petroleum prices are not just an economic problem, but they are also linked to social stability and quality of life. The common citizen ultimately pays the price of wars and global tensions. Therefore, only world peace, energy security and balanced economic policies can provide relief to the middle class. Unless the prices of petroleum products are controlled, the pressure of inflation will continue to affect the economic and social system of the Indian middle class.
Sanjeev Thakur
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