The next government at the Centre will have to contend with high oil prices and its impact on inflation and the current account deficit, following the US withdrawing its waiver on Iranian oil for some countries such as India, China and Japan.
The global Brent crude price has touched over $74 per barrel. Estimates are it could increase and touch $80 per barrel in the coming months. Iran has threatened to close the Strait of Hormuz, the major oil shipping route, in retaliation to the US action. Any such move by Tehran will send prices soaring.
Oil minister Dharmendra Pradhan in a tweet said “a robust plan for an adequate supply of crude oil to Indian refineries” is in place. “There will be additional supplies from other major oil-producing countries; Indian refineries are fully prepared to meet the national demand for petrol, diesel & other petroleum products.”
