The increasing geopolitical tension in West Asia (Middle East) has broken the back of the global economy. The movement of ships through the world’s most important oil route, the Strait of Hormuz, has come to a complete halt.
The strait is the lifeline of global oil trade, and its closure has pushed crude oil prices to dangerous levels of $112 per barrel.
Its direct impact is on the pockets of the common man. Due to increasing transportation costs, not only fuel but also the prices of groceries and essential commodities are increasing. Especially due to stoppage of supply of fertilizers, there is a possibility of deepening of food crisis in future.
Global scenario: The era of rationing has started
Many countries suffering from energy shortage have now started taking strict steps:
Japan and South Korea: Energy vouchers and fuel rationing have been implemented.
South Asia: Kilometer long queues are being seen at petrol pumps in Bangladesh, Philippines and Sri Lanka.
Australia: The government has advised citizens to undertake essential travel only.
India’s situation: challenges and government preparedness
India imports about 80% of its oil needs through this route. At present, there is a huge shortage of cooking gas (LPG) in many parts of the country. New connections have been banned and people in many cities are waiting for weeks for cylinders.
Given the seriousness of the situation, Prime Minister Narendra Modi, in his address to Parliament, made it clear that India will have to show “COVID-era preparedness and coordination”. However, he assured that at present the supply of petrol and diesel is smooth, but the import routes are being diversified to meet future challenges.
Will lockdown be imposed again?
As the date of March 24 (the anniversary of the lockdown of 2020) approaches, a huge surge in searches for “Lockdown in India” has been seen on the internet. Experts say that this is only a fear created due to the old memories of Covid and the current uncertainty. The government has clarified that at present there are no plans for any kind of lockdown, rather the focus is on ‘supply management’ and ‘energy conservation’.
Precautionary steps of the government:
Domestic Priority: Emphasis on meeting domestic demand instead of exports.
Formation of Task Force: Appointment of privileged groups to monitor energy, food and supply chains.
Industrial Reduction: Cutting gas supply to non-essential industries to save fuel.