Transport Industry Crisis: The continuous changes in the prices of petrol, diesel and CNG in India have put the transport industry in a state of confusion. Transport businessmen say that frequent changes in fuel rates in the country based on crude oil prices in the international market have made it difficult to accurately estimate operating costs. Regarding this, All India Motor and Goods Transport Association has demanded from the Central Government to change the fuel pricing system.

Dependence on imported crude oil became a major reason

India imports about 85 percent of its crude oil requirement from abroad. Fluctuations in prices in the international market have a direct impact on the domestic market. However, transport businessmen say that instead of revising the prices of petrol, diesel and CNG simultaneously, changes are made gradually and daily, making it difficult for businessmen to make financial plans.

Problems increased due to change in fuel prices amid rising costs

The country’s transport sector is already facing the pressure of rising operating costs, toll taxes, invoices, insurance premiums, spare parts and other expenses. In such a situation, due to continuous changes in fuel prices, the entire budget of truck operators and drivers is being affected. According to transport companies, due to daily changing prices, problems in fare determination and expense management are increasing.

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Long distance trucks are most affected.

When heavy goods trucks leave from one state to another, sometimes it takes 8 to 10 days or more to return. During this period, if the prices of diesel keep changing continuously, then both the driver and the transporter have to face problems in cash payment, advance amount and accounting of expenses. This further increases uncertainty and economic pressure in business.

The effect of fuel inflation reaches the general public

More than 75 percent of goods transportation in the country is done by road. In such a situation, the increase in diesel prices has a direct impact on the prices of food grains, construction materials, essential commodities and everyday goods. The transport sector believes that fuel price volatility ultimately increases the burden on the pockets of common consumers.

Appeal to the government to review prices once a month

Speaking to ABP Live, All India Motor and Goods Transport Association President Rajendra Kapoor said that Prime Minister Narendra Modi and Union Petroleum and Natural Gas Minister Hardeep Singh Puri have appealed that instead of reviewing the prices of petrol, diesel and CNG daily, it should be reviewed once a month on the basis of average international prices.

He suggested that the prices should be increased or decreased only once a month according to the same average, so that the transport industry, traders and drivers can get stability and economic imbalance can be avoided.

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India Poverty Report: Amidst the ongoing tension in the Middle East, bad news is coming for India. According to a report, due to this global crisis, about 25 lakh people in India may get trapped in poverty. Along with this, one may also have to face obstruction in the pace of human development and other losses.

The United Nations organization United Nations Development Program (UNDP) has revealed these things in its report. Let us know, what impact is this war going to have on India?

Clouds of crisis over 25 lakh people

The latest report of UNDP has indicated that around 88 lakh people around the world may fall into poverty. The report also shows that the impact of increasing military spending and persistent tension in West Asia will not be limited to that region only, but it can also impact the economy of the Pacific region.

According to estimates, there is a possibility of loss of about 299 billion US dollars. Regarding India, the report says that the number of people affected by poverty in the country may increase from about 4 lakh to 25 lakh.

Poverty rate also increased

The report also talks about the country’s poverty rate. India’s poverty rate may increase from 23.9 percent to 24.2 percent. Due to this, about 24,64,698 additional people may come under the ambit of poverty. Also, it is estimated that after this crisis, a total of 35,40,33,698 people in the country may live in poverty. Earlier this figure was said to be 35,15,69,000.

Country’s dependence on the Middle East

The UNDP report also points out the country’s dependence on the Middle East. According to the report, the country imports more than 90 percent of its oil needs from other countries. Of these, 40 percent crude oil and 90 percent LPG comes from the countries of West Asia. Also, more than 45 percent of fertilizer is supplied from the Middle East. These figures clearly show to what extent countries are dependent on Middle East countries to meet their energy needs.

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Imagine, what would happen if one day suddenly it is written on the petrol pump that the fuel is out. Major economies of the world are dependent on oil, but the reserves of many countries are decreasing rapidly. In such a situation, the question arises that in which countries can petrol and diesel run out first? And where do India-Pakistan stand in this list? Latest figures show that countries which have low reserves and high consumption are in real danger.

Why do oil reserves become power?

In today’s world, crude oil is not just a fuel but is the backbone of the economy. If there is even a slight stoppage in supply, prices go up and the impact falls directly on the pockets of the common man. For this reason, every country looks at its oil reserves as a protective shield.

Globally, there are more than 1.7 trillion barrels of proven oil reserves. According to the current consumption, they can last for about 47 to 50 years, but this is an average picture. The real story is hidden in the different circumstances of every country.

Which countries may run out of oil first?

Reserve-to-production ratio i.e. the ratio of reserves and production estimates how many years a country’s oil can last. In countries where production is high and reserves are low, oil can run out quickly.

If new sources are not found, earlier industry estimates for countries like Argentina, Indonesia and Mexico have suggested that their traditional oil reserves may be exhausted in about 10 to 12 years. Even the old reserves of big producing countries like China and Angola are considered limited. Pressure is also increasing on countries like Malaysia and Algeria.

Regarding the conventional oil reserves of United Kingdom and Italy in Europe, it is also estimated that these may decrease significantly in the coming 10 to 15 years. Australia has very little domestic reserves and fuel storage there is considered to be needed only for a few weeks, so it has to depend on imports.

However, it is important to keep in mind that depletion of oil reserves does not mean complete depletion, rather it means depletion of economically cheap and easily extracted oil.

At what position is India?

India is the third largest oil consumer in the world, but in terms of its reserves, India does not come among the top countries. The amount of proven oil reserves that India has is equal to about 2 to 3 years of its annual consumption.

India imports about 85 to 88 percent of its crude oil requirement from abroad. This is the reason why movements in the global market quickly impact India.

Recently, Petroleum Minister Hardeep Singh Puri told Parliament that India’s strategic petroleum reserves and other stocks combined can meet the country’s needs for about 74 days if there is a major disruption in supply. This means that India is not completely empty, but it will be difficult to go for a long time without imports.

situation of pakistan

Pakistan is said to have proven oil reserves of around 0.5 billion barrels and ranks very low in the global list of reserves. Compared to its annual consumption, its domestic reserves are only equal to about one to one and a half years.

Pakistan is also dependent on imports for crude oil and refined products. Apart from this, the domestic reserves of natural gas are also gradually decreasing, which are estimated to decrease in the next two decades, hence energy security remains a big challenge for Pakistan.

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