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Rising Oil Price in India

Crude oil price is in debate since last few month because Crude oil price is 71 dollar per barrel comparatively it is high in FY 2019-20 it is 52 Dollar per barrel.

Reason: Why oil price is getting high?

  • At post Covid-19 era world economy is recovering and as we know energy is a fundamental need restart the economy it results global demand is high but because of dispute between UAE and S Arab OPEC cut in oil production from 441000 per day barrel to 350000 per barrel because of low production don’t meet the global demand (or in other simple words Demand is more than supply) and high crude oil demand result Global High Price.

 

Impact of rising oil price

  • Petrol price rise 13/- per litre and Diesel 16/- per litre including all tax, rising petrol and diesel direct impact to middle class and economic weaker section family, inflation, essential commodity price is getting high which result into excessive burden pocket and no saving and all saving get exhaustive.

Way Forward

  • For a short term relief Govt has to exempt all tax and for a long term shift to new all alternative source of energy.  
Source: RamanIAS 

Keywords
Topic GS-2: Bilateral, Regional and Global Groupings and Agreements involving India and affecting India’s interests, Effect of Policies and Politics of Developed and Developing Countries on India’s interests, Indian Diaspora.