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Crude Oil Price Surge, a Pull-Down on India's Rising Economy

The agreement to keep 1.8 million barrels a day off the market has resulted in the ascent of crude oil price to $ 64.5 a barrel thereby increasing India’s oil bill and fuel inflation as India depends heavily on imported oil and India’s own oil production cannot sustain the country’s oil need. If the ongoing trend continues, it will increase the wholesale price index (WPI) inflation and worsen the fiscal deficit. Govt needs to fasten the process of in- house production as OPEC countries don’t seem too eager on full scale crude oil production in the near future, government can try to minimize the impact on common masses pocket but as per the current market scenario both Government and the common mass are bound to take a hit.