Crude Oil prices in April-May r already 50% above last year's average.
India's 60% of Crude oil is met with imports so hike in crude oil prize is threating for the Economy.According to CRISIL principal economist DK Joshi - "its Time to reform Oil Sector".
Ideally, the government needs to pass on some price rise to consumers.
But this is politically difficult as inflation is high and elections r only a year away
Globally, Several governments have been forced to pass on part of the burden to the public.The Indonesian Government has announced a 30% increase in pump prices from this Weekend.
This is a huge increase at the consumer level price.
It means that today 1 Litre Petrol is worth Rs. 52 today so 30% rise in it can be Rs. 67.6. A Rise of Rs. 15.6
So it is Quite possible that after the next election Government will rise our Petrol prize to Rs. 67 to 70.
Goldman Sachs, the most active investment Bank in Energy Market, last week predicted that oil prices would jump to $ 141 per barrel during the second half of year 2008.
Economists say that, the most important reasons for this oil price hike is,
1) High Demand for Energy by China ahead of the Beijing Olympic &
2) Week Dollar.
All these factors have potential to slow down our Country's Economy.
A higher fuel prices and inflation will translate into a hike in Interest rates.
Consumers need to understand this problem and they need to cut down un-necessary petrol and Transportation Expenses to balance their Monthly Budget.
India's 60% of Crude oil is met with imports so hike in crude oil prize is threating for the Economy.According to CRISIL principal economist DK Joshi - "its Time to reform Oil Sector".
Ideally, the government needs to pass on some price rise to consumers.
But this is politically difficult as inflation is high and elections r only a year away
Globally, Several governments have been forced to pass on part of the burden to the public.The Indonesian Government has announced a 30% increase in pump prices from this Weekend.
This is a huge increase at the consumer level price.
It means that today 1 Litre Petrol is worth Rs. 52 today so 30% rise in it can be Rs. 67.6. A Rise of Rs. 15.6
So it is Quite possible that after the next election Government will rise our Petrol prize to Rs. 67 to 70.
Goldman Sachs, the most active investment Bank in Energy Market, last week predicted that oil prices would jump to $ 141 per barrel during the second half of year 2008.
Economists say that, the most important reasons for this oil price hike is,
1) High Demand for Energy by China ahead of the Beijing Olympic &
2) Week Dollar.
All these factors have potential to slow down our Country's Economy.
A higher fuel prices and inflation will translate into a hike in Interest rates.
Consumers need to understand this problem and they need to cut down un-necessary petrol and Transportation Expenses to balance their Monthly Budget.
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