Preemptive steps to stop further oil price hike

The world has already suffered much due to the stress and strain in the relation between the West and the East. The power centre of the major economies are gradually shifting to the East, mainly China and Russia. The trade war between the USA and China has long been a centre of dispute for which people have had to pay prices. The tussle has already given birth to a regional war between Russia and Ukraine.

New political polarization has created newer types of problems and crises. The major economies are fighting for plundering people of the countries around the world. The poorer nations are being sandwiched in this fight for establishing economic hegemony. Although every problem our economy is facing now is not the results of their fights but in many cases we, the third world nations, are the most sufferers.

When calm and quiet relation exists, everything goes quite fine but whenever the tussle goes beyond control it also affects us. We have already seen price hikes of gas and oil due to their conflicts. What appears to be coming next is another bout of rise in the prices of oil as Russia on Friday announced its plan to reduce oil production next month, possibly from the next month.

Russia’s plan to reduce oil production came in retaliation of price caps by the Western countries on the country’s crude and fuel to punish Russia for its invasion of Ukraine. But the measure taken by the West doesn’t seem to be quite effective as Russia has already taken counter measure. After Russia’s decision, oil price rose by 2 per cent.

Russia has planned to reduce its crude oil production by 5,00,000 barrels in March per day. The decision of price caps by the Western countries on Russian oil came on February 5 prompting Russia to reduce its crude oil production. It is now our concern if this decision of Russia in retaliation of the Western nations imposing price caps is going to affect our oil prices. So far it has done so.

We have serious doubt about further rise in oil prices. Our experience tells us that the country will have no other options left without increasing the oil price. If it happens undoubtedly it is going to push the people against the wall. We have already had enough. Now if the oil price goes up again it will certainly and obviously affect the prices of all other essentials. There will be no other options left for the government to alleviate people’s sufferings.

In several of our editorials we advised the government to give some sorts of respite to the common people by taking some measures domestically. According to the government, it has nothing to do without hiking prices of gas and oil leading to the rise in the prices of daily essential items. If the government can recover the black money, if it can take the money back from loan defaulters by being hard on them and corruption can be curbed, if discipline can be brought in the banking sector, if hundi business can be stopped and finally if migrant workers send their money through banking channel it can have a breathing space at least for the time being.