Oil Price In India Roomers vs Reality

Oil prices crossed nearly 100 ₹ in India and common man can't affordi it. And of course, all are blaming to government. And especially the Central Government.

But very few people know that why the Government raised taxes. But you can't blame the government for all these. There are some international reasons behind this. India imports 82% oil. There is some oil in Bombay High and some in Odisha but its quantity is very less and can't Quench the thirst of this developing country and therefore we have to import the oil. And the country that gives the largest contribution to the import of oil to India is Iran.

              Iran used to give us nearly 30% oil out of 82%. But why India interested in Iranian oil instead of better options like Saudi Arabia. There are two reasons behind this. 

1- Iran takes payment in rupees instead of dollars.

2- Iran gives 120 days to pay for it.

   And therefore India takes a large number of oil barrels from Iran. But 7 November 2018 was a black day for India. Because the U.S stopped the import of Iranian oil for all countries except India and the other seven countries. 

             But there is a twist. The U.S reduced 63% import for India. So basically we have to purchase a large number of oil barrels from other countries which will not go to accept payment in rupees. 

               Our former oil minister Mani Shankar Aiyar told that oil prices in India are based on market price. If the market gets down, oil prices will go down but if oil prices will go higher there would be a surge in oil prices.  And it is correct because when there's even down or up of 1$ in price then India will get profit or loss of rupees 8536 crore rupees. In march 2020 prices of oil are under 0 rupees per barrel and India had a chance to store oil and make a profit. But there was no sufficient storage to store oil that can be used for at least 30 days. And India failed to make a profit. And India will fail until there is sufficient storage for oil.

                America is a superpower because they knew the importance of oil at the right time and therefore America can handle the worlds economy and your and my monthly budget. Turnover of Amazon, Apple, Facebook is the equal turnover of Bombay stock exchange. If India wants to become a superpower he wants to know the importance of not only oil but also education and technology.