CRUDE OIL PRICE HAS JUMP CROSSED USD 8O (Eighty) PER BARREL : ENOUGH WARNING SIGNAL FOR INDIAN ECONOMY

CRUDE OIL PRICE HAS JUMP CROSSED USD 80 PER BARREL: ENOUGH WARNING SIGNAL FOR INDIAN ECONOMY 

Crude Oil Price has jump crossed USD 80 per Barrel now, that is a lot of warning signal for Indian Economy. We (at India at National level ) enjoyed the downward price Spiral of Crude Oil as a wind fall, when it had gone as low as USD 40 per barrel after 2014; there was a great saving estimated to be more than Rs. 20 lakh Crores, (Indian Rupees 20000 Billions) in last 7-years and we spent this saving even if in our expenditures, while the Indian Consumers continued to pay the same and higher prices of Petrol and Diesel ( Hydro-Carbon Fuel Prices ) compared to pre-2014 levels, in simple terms we used/consumed this savings.

If the Crude Oil Price crosses just USD 20 per Barrel more ( if it becomes USD 100 per Barrel to say), as it is already on a cyclical Upward Spiral and it is but global economic phenomena without choice, there will be enough sweat for the Indian Economy. The Governments ( both Centre and States ) are quite dependent on Hydro-Carbon Fuel Prices for the tax revenues for their treasury need, however, there is also a limit the Indian Consumers can pay by Petrol and Diesel Prices (Hydro Carbon Fuel Prices), thus there is a very big trade-off that has been built in last few years, after 2014 crude oil price crash precisely, and the dependence on the tax on the fuel material largely imported, the price of which is driven by global triggering factors is a very tricky situation. The Fuel Prices will be generating inflationary pressure in the economy because of its impact on the cost of logistics of all essential and non-essential commodities of consumption.

The Indian Edible Oil economy on the other hand, is also very largely dependent on imports ( say we are not able to do without imports ) and we can celebrate ( ? ) by importing as much edible oils we can by constituting awards for highest edible oil importers and traders, fair enough. When it comes to paying for the Edible Oil packs, the Indian People know what it is.

It is high time and there is need to think about curtailing our expenditures ( in India ) everywhere possible to allow austerity that can come in without sacrificing national essential need, as we are an imported fuel heavy economy in India.
A Fuel Price Stabilization Fund can be planned to be created at National Level in India by going out of the way at all costs so that it will come in handy as well as a bailing out mechanism for such inevitable situations that can come because of Global Factors beyond National Control.

Sometime back I have written an article here in my blog, titled as : A FUEL PRICE STABILIZATION FUND SHOULD BE A GOOD IDEA which was also planned to be placed as a paper for an international conference on Oil and Gas sector ( could not move due to Covid-19 ). The Conscious. Alert and Citizens of Conscience who find interest can also read it.

[ Reference Link for Crude Oil Price Crossing USD 80 per Barrel as on 28-September-2021
https://in.investing.com/news/brent-oil-jumps-above-80-as-global-energy-crunch-shakes-markets-2899365?fbclid=IwAR3bw-gxjO_shYWY2etl5S7H6-2emlS8RVIMKElFjRRKCC3IdbUx4bOkgHk ]

About the Author : Dr. Nimain Charan  Biswal is a B.Sc.(Agri. Science and Technology), M.B.A. and Ph.D.(Management Area ) by qualifications and he has 35+ years of work experience in both  industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University (with Resource Support of IIM-Ahmedabad). Dr.Biswal is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organisations in Senior/Top Management Capacities at Board level as well as Managing Director and CEO. He is a management expert covering extensive areas from management in agriculture, industrial management, development management to management of public systems. He is a prominent professional of India and known Internationally as well. He lives at Mumbai in India.

Comments

  1. UnknownOctober 11, 2021 at 9:26 PM

    It seems the Govt has not utilized the savings of over Rs20lakh crore earned over last 7yrs!! . The Fuel Price Stabilization Fund ,as suggested by Dr Biswal may address the issues.

    ReplyDelete

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