By Admin 
Middle East Crisis Oil Prices: Due to the situation arising in the Middle East, there is an atmosphere of uncertainty regarding the prices of crude oil. Its impact is visible on the entire global economy. The situation of countries dependent on oil imports seems to be getting worse.
The news of shortage of petrol and diesel in neighboring countries Pakistan-Bangladesh is making headlines. However, oil prices still remain stable in India. Let us know what preparations the government and oil companies have made to protect the common man from rising prices…
Relief from the strategy of oil companies
Government oil marketing companies like IOCL, BPCL and HPCL play an important role in preventing sudden increase in fuel prices in India. According to experts, these companies adopt a balanced strategy to handle price fluctuations. When crude oil is cheap in the international market, these companies create a kind of financial buffer by earning good profits.
Later, when oil prices increase, an attempt is made to reduce the direct impact on customers by using the same accumulated capital. In this process, companies definitely have to suffer losses for some time.
But, with this strategy common people get relief from inflation. However, if crude oil prices continue to rise for a long time, then companies have to change the prices.
Expert expressed concern
According to a report published in ET, regarding rising oil prices, experts have indicated that there is a limit to the relief that consumers are getting at present. According to Madan Sabnavis, Chief Economist of Bank of Baroda, government oil companies are currently trying to control prices by bearing cost pressure at their level. Due to which common people are not suddenly burdened with inflation.
However, it is not easy to maintain this situation for a long time. He believes that if the price of crude oil in the international market goes above $100 per barrel, it will be difficult for companies to bear losses. In such a situation, the possibility of increase in fuel prices will increase and its direct impact will be on the general public.
What further options are available?
At present, the prices of petrol and diesel remain stable in the country. However, the country is dependent on imports from other countries for 85 percent of its oil needs. If the war drags on and crude oil prices cross $110 per barrel, the government will have to bear the losses of the oil companies in the form of subsidy. As a second option, the government is left with the option of increasing oil prices.
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