Brent crude oil prices have surged nearly 80 per cent in the past three months, owing to geopolitical tensions in Latin America, the Russia-Ukraine war, and the West Asia crisis. The rising oil prices have mounted additional pressure on India’s import bill and fuel costs since the country largely depends on foreign imports to meet its domestic demand.
According to the latest statistics, the oil prices first rose in January after US forces captured Venezuelan President Nicolás Maduro. They climbed further in March when the US and Israel launched airstrikes on Iran, with the aim of decapitating the Islamic regime.
Last month, oil prices fluctuated from $70 per barrel to $119 per barrel amid the continued hostilities in the region, leading to a change of more than 80 per cent in prices since the beginning of the year.
While crude oil prices have surged at an immense rate in recent times, the demand for alternative fuels like ethanol has started gaining traction.
The Indian government is already pushing this transition with its target of 20 per cent ethanol blending in petrol, supported by policy incentives and capacity expansion.
This shift is already benefitting companies involved in ethanol production, sugar processing, and biofuel industries, as demand for the alternatives grows across various sectors.
While the Indian government has largely absorbed the shock of fluctuating oil prices, the pressure on the economy is visible through the share markets, lower demand for precious metals, and decreased economic outlook due to the ongoing war in Iran.
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