Fuel prices are seeing a record hike in India and around the world. In recent weeks it surged to $80 a barrel which is the highest in years.
The World Bank on Thursday said that the global oil/fuel prices won’t reduce until 2023 and the current price hike can be a threat to economic growth.
According to the latest Commodity Markets Outlook, the average crude oil price may go up to $70 a barrel that is 70% higher than in 2020 which is raising the price of other energy fossil fuels like natural gas, the report said.
World Bank’s chief economist Ayhan Kose said that these energy price hikes can be a risk in the short term of global inflation and if these rates are consistent then it will also hamper the energy-importing countries’ growth.
The World Bank also stated that the rise is more than the World bank projected and it will complicate the economic decisions of countries as they are still recovering from last year’s recession.
The World Bank takes an average of cities Brent, West Texas and Dubai and said that the price high will remain high in 2022 and will start to wane in the second half of 2022 as supply constraints are relaxed.
The average rise projected for 2022 is $74 and it may fall to %65 in 2023, the World Bank stated.
The recent hike in crude oil prices has affected the world and India as well. There have been a variety of protests as well in India regarding the same. It is time that people start exploring alternatives to petrol and diesel and this hike may work in favour of the conservation of fossil fuels.
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