By Admin 
Crude Oil Crisis: The impact of the ongoing tension in West Asia is now visible on the economies around the world. The biggest concern is about the rising prices of crude oil. The situation has become such that Brent crude has crossed the level of $ 100 per barrel. Experts believe that if this situation continues for a long time, petrol and diesel may become expensive in India and the pressure on the household budget of common people may increase.
Why are oil prices increasing?
Manoranjan Sharma, Chief Economist of Infomerics Ratings, told in a conversation with ANI that the increasing conflict in West Asia and the obstacles created in the Strait of Hormuz have affected the global oil supply. This sea route is one of the most important oil trade routes in the world. India is also largely dependent on this route for its oil needs. According to Sharma, about 60 percent of India’s total imported crude oil comes through the Strait of Hormuz.
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Crude oil reached 100 dollars
According to experts, when tension started in West Asia, the price of crude oil was around $67-68 per barrel. But after the situation worsened, it has increased rapidly. At present, Brent crude has reached $ 100 per barrel, while the prices in the spot market are said to be between 120 to 130 dollars per barrel. This increase has become a matter of concern for the global energy market.
What will be the impact on the common man?
The increase in crude oil prices has a direct impact on the prices of petrol and diesel. Due to cost of fuel, transportation cost increases, the effect of which is also visible on the prices of food items, vegetables, fruits and other essential goods. Manoranjan Sharma says that rising fuel prices will affect the household budget and create additional financial burden for families.
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Challenge before the government
Although the government is constantly trying to provide relief to the common people, it also has limitations in the face of the global energy crisis. Experts say that the government or oil companies cannot bear the increased costs for a long time. This is the reason why there has been a gradual increase in fuel prices in the last few weeks.
What is the solution?
Manoranjan Sharma believes that India will have to pay more attention to renewable energy and alternative energy sources to avoid such shocks in future. He said that the country is already moving in this direction and the share of renewable energy in India’s total energy production has reached about one-third. However, it will take time to reduce dependence on imported fossil fuels.