News from India,World
Predicting oil prices is a mug’s game. Yet I will stick my neck out and forecast that oil will fall from today’s $135/barrel to under $100/barrel by the end of 2008. Usually, when prices go up, demand falls. But world demand for oil has kept rising for five years even though the price of oil has quadrupled in this period. Why should the trend not continue?
In the US, petrol has crossed $4/gallon, so consumption is falling . Demand for energy-guzzling vehicles has evaporated. Oil demand has stayed high in Asia, where demand has been rising fastest. Why? Because most Asian governments have rigid price controls on petroleum products.
The good news is that Asian governments have decided to reduce the subsidy. as asian government can not continune to provide subsidy on Oil prices any more.Malaysia has increased prices by 41%, while Indonesia has raised the price of petrol by 33%, and of diesel and kerosene by 25%.India has made petrol costlier by Rs 5/litre and diesel by Rs 3/litre. These are timid, insufficient increases. Yet they should encourage conservation in coming months
We should understand that government can handle little bit price up and down in international market but if price are running to words high (100$ to 140$) they does not have any option to increase the Petro price. we have to be ready to accept more price increase after election if price in international market will not go down .
- Life become costly. Inflation in double digit
