The relief which can be seen being experienced because of the fall in the prices of commodities like crude oil can soon come to an end. The shortage of diesel, which is the most important fuel for everyday life and the global economy, is soon about to increase, and in the next few months, all parts of the world will get affected with the same.
Signs of diesel shortage can be seen now itself. In the USA, the diesel stock is the lowest in 40 years, and Europe is facing almost the same situation. The circumstances will deteriorate further by March, when prohibitions on the import of diesel from Russia will be imposed. The situation has started exacerbating from now onwards only. The global exports of diesel have reduced, whose gravest impact will be felt by poor countries like Pakistan. Diesel not only runs vehicles like buses, trucks, ships, and trains, but is also used in the functioning of machines and factories used in construction work and agriculture. This is why the shortage of diesel will also show a great impact with its price rise.
As per energy expert Narendra Taneja, the direct effect of diesel prices rising in the international market will be seen on its price in the Indian market. He said that the refining capacity in the country is good, and therefore, supply will not be an issue. But among the yardsticks based on which diesel prices in the country are determined, the most important is its price in the international market. Hence, if diesel prices get hiked across the globe, rates in India can shoot up as well.
