Energy crisis in India’s neighboring countries: The war between Iran-Israel and America has created an energy crisis in the whole world. Especially in South Asian countries, due to rising fuel prices and reduced supply, the daily life of crores of people has become disrupted. It is fortunate for us and you that the prices of petrol and diesel are stable in the country. Even the prices of domestic LPG have not been increased, while the situation in India’s neighboring countries is continuously deteriorating.

Situation worse in Bangladesh, Pakistan

In this sequence, take Bangladesh only, where long queues are seen outside the cooking gas distribution centres. Since Bangladesh imports 95 percent of its energy needs, the prices of petrol and diesel here have reached 116 taka and 100 taka per liter respectively. To save electricity, the government has advised those working in offices to ‘work from home’. Universities have been closed and fuel rationing has also been started.

Whereas, if we talk about Pakistan, fuel prices here have reached the highest level in South Asia. Here the price of petrol has reached a record level of 458-460 Pakistani rupees and the price of diesel has reached 500-520 Pakistani rupees.

The fuel allowance of government departments has been reduced by up to 50 percent for two months. To reduce the import bill on oil, a 4-day working week has been introduced in government offices. A rule of 50 percent staff presence has been introduced in government offices. It has been decided to hold the Pakistani Super League (PSL) without spectators so that it can help in saving the huge crowd consumption and transportation expenses in the stadium.

Nepal’s health also deteriorated

Amidst the growing energy crisis, the situation in Nepal is also not getting better. The government has taken several steps to save the skyrocketing prices of crude oil ($110-113 per barrel) and the declining foreign exchange reserves of the country. Now there will be only seven-hour shifts in government offices and banks. That means offices will remain open only from 10 am to 5 pm so that electricity consumption can be reduced. To save electricity, shopping malls and markets have been ordered to close after 7 pm. There has been a complete ban on decorative lighting even in weddings or parties etc.

What steps did Sri Lanka take?

The energy crisis is also deepening in India’s neighboring country Sri Lanka. Here, one day holiday in a week has been increased to two days in schools and government offices. The government is also trying to convert vehicles running on petrol and diesel into electric vehicles. To avoid interruption in supply, the price of aviation fuel has been more than doubled. The price of petrol here is 398 Sri Lankan rupees. Similarly, the price of diesel is 455-487 Sri Lankan rupees per liter. Rationing of cooking gas has been implemented here.

A matter of concern for India

Even though the prices in India are stable right now, it is important to keep in mind that India also imports up to 80 percent of its energy needs. If crude prices increase, imports will also become expensive for India, which will increase pressure on its foreign exchange reserves. If crude oil prices remain above $100 per barrel for a long time, India’s GDP growth rate may decline. Experts even say that if petrol pump prices increase by even 10 percent in the coming time, then retail inflation may increase by 50-60 basis points.

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