Petrol-Diesel: Challenging times for Modi government
The end of the war can only be possible if America and Israel abandon their bullying stance.
Petrol-Diesel: Challenging times for Modi government: The financial instability that is going on around the world regarding the prices of crude oil and natural gas depends on the end of the war in West Asia. The end of the war can be possible only due to the US+Israel abandoning the bully stance. This does not seem possible at the moment and its negative impact is clearly visible on all global financial markets. It is clear that the current instability has arisen due to the complete stoppage of oil supply from the Gulf region of West Asia. Due to the low chances of supply being restored soon, crude oil prices reached $ 120 per barrel on Monday. In such a situation, due to the statement of US President Donald Trump that 'the war with Iran is going to end soon', crude oil prices inevitably fell and fell to $ 90 per barrel. But despite this, the trend of rapid increase in prices has proved to be a financial earthquake for oil importing countries.
On Tuesday, as crude oil prices remained around 85-86 dollars, relief was certainly felt from this earthquake, yet there is no scope for the Gulf countries to resume oil business. Due to this, most countries have chosen the path of increasing the retail prices of petroleum products, especially petrol-diesel and cooking gas. India has also not been exempt from this trend. The government has increased the price of domestic cooking gas cylinders by Rs 60, while discussions about limiting the supply of commercial cylinders have started giving vent to hoarding and profiteering.
This trend is regrettable. There was also a voice raised against this in Parliament on Tuesday when the opposition accused the government of negligence and incompetence and said that despite the claims of having 72 days of reserves, the government is deliberately catering to the interests of profiteers by admitting that the country actually has only 25 days of oil and gas reserves.
According to media reports, the government has instructed oil marketing companies not to increase the retail prices of petrol and diesel. This newspaper had shared this information in its columns last week that these companies had earned a good profit by not reducing the retail prices despite the global oil prices being well below the average of $80 per barrel during the last few months. That is why the government now wants neither the prices of petrol and diesel to be tampered with nor any disruption in supply. Such government steps are also very important to maintain the strength of the national economy.
As rising crude oil prices have also started to weigh on American consumers, President Trump has stepped up his warnings to Iran to end its 'blockade' of the Strait of Hormuz. This sea passage connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. This passage, which is 33 km wide at some points and up to 95 km wide at others, falls under Iranian jurisdiction. The Hormuz Peninsula, which lies within this passage, is also owned by Iran. The United Arab Emirates (UAE), Qatar, Kuwait, Oman, Iraq and Saudi Arabia depend on Iranian permission for tankers to travel through this maritime region. These countries have suffered direct financial losses of billions of dollars in the last 10 days.
Being an ally of America, Iran is targeting its oil factories, oil wells and tankers with missiles and drone attacks. People have also started getting fed up with this situation and their inner frustration is now forcing the rulers of these countries to open their mouths against America and Israel. When public protests like 'This war is not ours' start taking place in authoritarian countries like Saudi Arabia, then this is a message for the rulers to ask President Trump to change his attitude towards Iran. Well, until this happens, it is also the duty of the Modi government of India not to let the prices of oil, diesel and natural gas surge. This is the time to give practical form to the claims, not to find verbal excuses.