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How oil prices are wrecking the economy
June 12, 2008
Here's why we in India should be worried
India guzzles...
3.01 million barrels per day of crude oil
2.58 million barrels of petroleum products
But produces only
700,000 barrels of crude oil per day (23 per cent of its consumption). Demand for crude oil is rising by 7 per cent, while imports are rising by over 9 per cent. With rising prices, the import bill is ballooning, leading to a strain on government finances
Now you know the score
But will oil prices come down any time soon?
You're living in a fool's paradise if you believe that!
Russian company Gazprom, which supplies a quarter of Europe's natural gas, predicts oil prices, currently already very steep at $135 per barrel ($76 per barrel in 2006-07), will be $250 per barrel in 2009
Goldman Sachs has projected that oil prices could rise to $200 per barrel by the end of 2009
In fact, Morgan Stanley sees oil prices at $150 per barrel in the next three weeks
And closer home, the Oil and Natural Gas Corporation says three-digit oil prices are here to stay, so you might as well get used to emptying out your wallet at the gas station
Image: Activists of India's opposition Bharatiya Janata Party (BJP) shout anti-government
slogans, protesting against a government hike in fuel prices in Mumbai | Photograph: Sajjad Hussain/AFP/Getty Images
Also read:
Nilekani on 6 things that changed India
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