By Admin 
- India’s trade and fuel prices will be adversely affected.
Crude Oil Price Hike: Crude oil prices are gaining momentum due to increasing tension between America and Iran. Crude oil prices have again reached the level of $ 91 per barrel. Already 20% of the world’s fuel supply has been disrupted due to the second blockade of the Strait of Hormuz and now Yemen’s Houthi rebels have announced a blockade of Saudi Arabia’s oil ships. Due to this, the Red Sea route has also come into the danger zone.
Why did the Houthis target Saudi Arabia?
Houthi rebels are a group directly supported by Iran. In the ongoing war between America and Iran, when America has stopped the movement of oil and gas tankers from Iranian ports, the Houthis have also retaliated and started a siege of Saudi Arabia, America’s biggest ally in the Gulf region. Houthis have imposed a complete ban on all ‘Aramco’ oil tankers of Saudi Arabia passing through the mouth of the Red Sea (Bab al-Mandab) on the basis of drones and anti-ship cruise missiles.
What will be the effect of this?
Just as Hormuz supplies 20% of the energy to the world. Similarly, about 12% to 15% of the world’s total maritime trade and about 10% of the global oil supply passes through this route. In such a situation, if due to fear of Houthi attacks, shipping companies leave the Red Sea route and choose the ‘Cape of Good Hope’ route, circling the entire African continent, then this will increase the travel time by 14 to 30 days. If the route is longer, the expenditure on fuel will also increase. In such a situation, the marine insurance premium of ships will also increase.
crisis in india
India imports a large amount of crude oil from Russia, which comes to India via the Red Sea via the Black Sea and Suez Canal. However, the Houthis have not talked about attacking Russian ships, but the tension in this entire area will definitely have some impact.
Another problem for India is that textiles, tea, basmati rice, engineering goods from India go to Europe and America through the Red Sea and Suez Canal. Changing the route will also increase the cost of Indian exporters. In such a situation, Indian goods will become expensive and less competitive in foreign markets.
Will the prices of petrol and diesel increase?
If the prices of crude oil in the international market remain at the level of $91 or more for a long time, then we can expect to see an impact on the prices of petrol and diesel in India from the first week of next month. The prices of petrol and diesel may increase by Rs 3-5 per liter. However, nothing has been said officially about this yet.
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