The situation in the Middle East has created uncertainty regarding crude oil prices, which is having an impact on the entire global economy.

Relief to the general public even amidst the oil crisis...

Middle East Crisis Oil Prices: The situation in the Middle East has created uncertainty regarding crude oil prices. This is impacting the entire global economy. The situation in countries dependent on oil imports appears to be worsening.

News of petrol and diesel shortages in neighboring Pakistan and Bangladesh is making headlines. However, oil prices remain stable in India. Let's find out what preparations by the government and oil companies have protected the common man from rising prices...

Relief is being received from the strategy of oil companies.

State-owned oil marketing companies like IOCL, BPCL, and HPCL play a crucial role in preventing sudden fuel price spikes in India. According to experts, these companies adopt a balanced strategy to manage price fluctuations. When crude oil is cheaper in the international market, these companies generate substantial profits, creating a financial buffer.

Later, when oil prices rise, these same deposits are used to mitigate the direct impact on consumers. In the process, companies inevitably incur losses for a short period.

However, this strategy provides relief from inflation for the common man. However, if crude oil prices remain high for a long time, companies may be forced to adjust their prices.

Experts expressed concern

According to a report in ET, experts have indicated that the relief consumers are currently receiving from rising oil prices has a limit. According to Madan Sabnavis, chief economist at Bank of Baroda, state-owned oil companies are currently trying to keep prices under control by absorbing cost pressures, thus preventing the common man from experiencing a sudden inflationary burden.

However, this situation is unlikely to last long. He believes that if the price of crude oil in the international market rises above $100 per barrel, it will become difficult for companies to bear losses. This will increase the likelihood of fuel prices rising, directly affecting the general public.

What options are available next?

Currently, petrol and diesel prices remain stable in the country. However, the country relies on imports from other countries for 85 percent of its oil needs. If the war continues and crude oil prices exceed $110 per barrel, the government will have to bear the losses incurred by oil companies in the form of subsidies. The only option left for the government is to increase oil prices.