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.

LPG Gas Supply: Will gas supply stop in India? What is the truth about LPG ships stranded in Hormuz?

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.

There was chaos among those who bought gold and silver! Prices have skyrocketed in 5 days, know today’s latest rates

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.

Crude oil prices: Today is the 32nd day of the ongoing conflict in the Middle East. On February 28, America and Israel attacked Iran. This scene of devastation still continues. Shells are raining from both sides. Many important targets of Iran have been damaged. The ceasefire initiative has remained in vain.

Amidst all this, today on Tuesday, March 31, the prices of crude oil have increased further in the international markets. Today Brent Crude has crossed the level of $ 116.50 per barrel. This is the highest level till date after June 2022.

The effect of Trump’s threats is visible

US President Donald Trump said in an interview with the Financial Times that he wants to take oil from Iran. He also told that the US Army can capture Kharg Island, from where about 90 percent of the country’s oil will be exported. Trump has also threatened to wipe out Iran on Truth social media.

He has said, if Iran does not compromise. He said that if Iran does not open the Strait of Hormuz, America will completely destroy Iran. Their houses, power plants, oil wells will be cleaned. These threats of Trump have further deepened the uncertainties, due to which oil prices have now crossed $116 per barrel.

Experts warned

The impact of the war in Iran is such that in March alone the prices of crude oil have increased by 50-60 percent. In view of the attacks on it, Iran has closed the Strait of Hormuz, through which 20 percent of the world’s oil passes. Market experts say that if the situation remains like this, prices can reach $ 150 per barrel.

Also read:

Kerosene oil will be available again at ration shops, know which states got approval amid the energy crisis?

Commercial LPG Crisis in India: The effect of increasing tension in the Middle East is now visible in India also. Even though the government has talked about ensuring the supply of oil and gas amid the war related to Iran, people are facing problems due to shortage of LPG in many parts of the country. According to hospitality body AHAR (Indian Hotel and Restaurant Association), about 20 percent of the restaurants in the financial capital Mumbai have been closed due to reduced supply of LPG cylinders.

The organization says that if this situation continues, then about 50 percent of the food shops may be closed in the next two-three days. Restaurant owners say that they are facing a lot of difficulties in getting commercial LPG cylinders for the last two days.

Shortage increased due to Iran war

Similar problems are also being faced in cities like Bengaluru and Chennai. The organization says that if the gas supply does not normalize soon, the situation here too may become serious. Hotel owners in Bengaluru have indicated that they may have to temporarily close their operations if commercial LPG supply is disrupted, as their work is completely dependent on LPG.

Even in Chandigarh, the situation regarding LPG supply is continuously worsening. A large number of commercial gas cylinders are stored in the warehouse of Indane Gas Agency. According to the employees, regular supply of commercial cylinders has not been available for the last four days, due to which the limited cylinders coming are getting accumulated in the warehouse itself.

According to Sonu, an employee working in the warehouse, hotel and restaurant operators are continuously inquiring about the cylinders, but at present the cylinders are not available. Apart from this, the supply of domestic gas has also been affected and employees say that the supply of domestic LPG has reduced to almost half. Due to this situation, the concern of people associated with hotels, restaurants and food business in the city has increased, because their operations completely depend on the availability of gas cylinders.

long queues outside the warehouse

Even in Bhopal, the effect of gas shortage amid the war related to Iran is clearly visible. Here, the problems of common people have increased due to stoppage of supply of commercial LPG cylinders and making a gap of 25 days mandatory between booking of domestic cylinders. The situation is such that long queues of people have started forming outside the warehouses of gas agencies. Many people are worried about the availability of cylinders.

Common consumers say that even though the government is talking about the situation being normal, cylinders are not easily available at the ground level and the supply of commercial cylinders has been suddenly stopped. People also allege that taking advantage of the current situation, some gas agencies are forcing consumers to wait citing shortage of cylinders. This has created an atmosphere of confusion and worry regarding gas supply in the city.

government in action

On the other hand, the Central Government is keeping an eye on the situation and is taking steps to ensure adequate availability of oil and gas. The government has instructed oil refineries to increase LPG production so that there is no shortage in supply. At present the priority of the government is to maintain the availability of domestic LPG.

According to government officials, the purpose of this step is to avoid disruption of essential services like restaurants, hospitals and food supply chains. Meanwhile, Donald Trump has indicated that the war related to Iran may end soon. Besides, G7 countries have also decided to use strategic oil reserves. After these announcements, there has been some softening in the prices of Crude Oil in the global market.

Also read: Rupee rises from all-time low with new enthusiasm due to Trump’s announcement on Iran war, dollar washes heavily in currency ring