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Due to Gulf tension, Indian fuel import bill may be impacted

fuel importFrom Qatar, due to Qatar’s ongoing dispute with its Arab neighbouring countries, there might not be an immediate impact on India’s gas supplies. However, if this situation persists for longer the oil import bill of India may be impacted by the rise in crude prices.

Generally, from Qatar India imports liquid to gas. From Qatar, No oil is being imported so it may be understood that oil imports will not be impacted. With a change in the crude oil rates gas prices change and it’s the real truth. Because usually, the gas deals are related to oil so the change in gas prices is seen.

With Qatar regarding the 25-year LNG (liquefied natural gas) deal India in 2016 had renegotiated to make it in accordance with the changing oil prices and since 2014 it had been seen going down. By this renegotiation of the contract provided strength in costs and expenses to India.

In the near future the officials don’t see problems in supplies of gas or oil but as per few experts, the oil supplies may be affected in a long term. In case the oil supplies get affected and if oil prices keep rising in the long term then with Qatar India might have to give up the flexibility of its renegotiated gas contract.

By oil prices, Finances of people and the economy are impacted that go too high. As a result of high oil prices if the gas prices also increase, rather than on public welfare activities the government has to spend more on gas. As a less polluting fuel India is pushing the use of liquid gas and in the long term, this impact on gas prices can prove to be a crisis for the Indian economy.

Prices of oil had been falling down since 2014 and had led to a 60% trimmed oil import bill for India in the previous two years. This helped in improving the Current Account Deficit and improved the rupee value while keeping the inflation in check. This resulted in more funds with the government to invest in the welfare of society.

Since 2014 Prices of oil had been falling down and in the previous two years had led to a 60% trimmed oil import bill for India. While keeping the inflation in check this helped in improving the Current Account Deficit and improved the rupee value. To invest in the welfare of society, this resulted in more funds with the government.