After touching the magical figure of $72 now oil prices could slips some cents. Because this sudden spike in oil prices are not fundamental it is just because of trade war situation derived by Geopolitical Tension between Russia-USA, Syria-USA, Sunni-Shia conflict. Once the impact of Geopolitical tension gone, we can see oil again at $65 in few weeks.
But in all this one thing it teaches us that the crude oil prices are touching only $72 and our country feels the heat. But in coming time it may touches to $80 then what?
India is importing almost 82% of consumed oil, and in the meantime India’s imports have been growing and growing and growing. And latest data shows that India’s fuel demand rose 7.2 percent in March compared with the same month last year. Consumption of fuel, a proxy for oil demand, totaled 18.62 million tons.
Now it’s the time to push the use of renewables, now we have to leave our conservative thinking towards fossil fuels and opt for renewables, because if we can’t convert us from conventional to unconventional then it could affect our economy very badly. And now if we not learn a lesson then soon India encounter a looming threat of oil drought if it doesn’t shift to a less crude-dependent path.
Some people are saying that government is responsible for higher oil prices it’s not true, we can say that it’s the luck of Prime minister Narendra Modi and it is also the biggest factor behind his success that when his government comes in power the crude oil prices is almost down to $40/ bbl. At the time Dr. Manmohan Singh the Brent crude was at $99 /bbl. and that putting pressure on an import bill and it declined just week after Modi took office in 2014.
And now the Election in 2019, now state run retailers are in pressure to sell transport oil at loss. This time Modi’s luck is turned. Now Crude is above $70. And this increased pressure on government to control oil prices in the country.
Now we should push renewables and need a support of strong rules and policy. India’s Target to achieve 175 GW Green energy till 2022 is still a very hard task.
The three main oil marketing companies IOCL, BPCL, HPCL net income has tripled in last three fiscal years they get profit of deregulate oil prices. And now the solution are force the marketing companies to sell at a loss, and take excise and state sales duties under GST.
It also subsidized the renewable products like Solar and other equipment’s. Electric vehicle being encouraged by the tax code.
Government is doing their work to implement policy to take Renewable in mainstream but we as a consumer also changed ourselves towards the use of renewables and leave fossil fuel. Because it’s the high time if we still do not understand and continue to do so, then our economy will affected very badly. We do have a renewables agenda, true, but we have to push it far enough soon enough.