Russia-Ukraine tension: Petrol-diesel prices will again be on fire, the energy crisis will deepen in the whole world
Corona has put tremendous pressure on the global economy for the last two years. The economy is now trying to recover from the weakened Omicron. In the meantime, rising oil prices can once again deepen the crisis. There will be a huge burden on the pockets of the common consumers when oil prices rise, and this will also affect business.
As the Russia-Ukraine crisis worsens, a major conflict appears likely. The world will suffer dire consequences if there is no peaceful solution. All over the world, the energy crisis could worsen. Trying to recover from the shock of Corona, the economy may once again be in deep trouble. Despite the turmoil in the stock market around the world, this crisis is showing signs of further deepening. Oil prices have increased from $ 70 per barrel to $ 98 per barrel in just one day, which may rise further in the coming days. As a result, the price of petrol and diesel in the country can once again spiral out of control. During the current elections, oil prices might not increase for a few days, but as soon as the elections are over, it is expected that petrol and diesel prices will increase.
85 percent of India’s oil requirements and 56 percent of its natural gas requirements are met by imports. If oil and gas prices rise in such a situation, then economic pressure on India will increase. It will have to pay more foreign exchange in the form of oil prices, which will reduce its foreign exchange reserves. Dollar prices will rise in the international market, and the rupee will depreciate. An increase in inflation can be attributed to the fall in the rupee’s value.
Why does India have more impact
Energy expert Narendra Taneja told reporters that Indian oil and gas companies have invested trillions of dollars in Russian oil companies. Russian companies have also invested heavily in India’s oil-and-gas sector. Trade sanctions imposed by the US against Russia due to the Ukraine crisis will affect trade with other countries including India. India’s companies that operate in Russia may also be affected.
As a result of Corona, the economy of the entire world has been under tremendous stress for two years. With the weakening of Omicron, the economy is now trying to recover. In the meantime, rising oil prices could deepen the economic crisis once again. The increase in oil prices will put a heavy burden on the pockets of the common consumer and this will also affect businesses.
The world’s largest producer of oil and gas in Russia. International sanctions can affect the economy of the world if they are imposed on it. The impact on other economies may deepen the crisis on India’s export sector, causing it to face additional difficulties.
The crisis will not only affect the common man but also the government. The government has taken steps to reduce the fiscal deficit. The government aims to reduce the fiscal deficit from 6.9 percent to 6.4 percent this year, but under the current conditions, it may be difficult to achieve this goal.
It may be difficult for the government to reduce the budget deficit due to rising dollar prices, rupee depreciation, and rising inflation. It can also reduce the expense of welfare programs, which can have far-reaching effects. The government’s budget deficit may increase if it does not cut these welfare schemes.