Oil Prices in South Asia

85 million barrel of oil is supplied daily in the world ,but the demand is 86. 4million barrel. Price of the oil will keep on rising up until the price kills the demand .Market in United stated looked very gloomy Dow was down almost 400 point and crude oil was closed at $ 138.5 record high .People are blaming diff rent factors to the rise in the oil prices which includes future trading ,geopolitical crisis in Middle east and Africa and high supply from emerging nation . Situation in united states is defiantly bad for sure .Working for one of the biggest auto motive dealership in the world I am very confident the entire country is suffering from the slow down especially the auto motive industries and housing market . Still being trained to be an economist , my personal comment about the econ of united states is that it has not yet see the rock bottom yet .
Lets now look at the impact of oil prices in south Asia especially Nepal and India.India’s Congress party-led government increased prices at the nation’s fuel pumps on Wednesday, prompting a backlash from rival parties and threats of street protests.The government raised retail prices of petrol, diesel and liquid petroleum gas by 8-17 per cent to reduce the burden of fuel subsidies expected to jump to $57.8bn this year – more than 3 per cent of gross domestic product.

In a televised address on Wednesday night, Manmohan Singh, Indian prime minister, urged citizens to conserve fuel, saying the price rises were “inevitable” to relieve pressure on the state-run oil companies that have shouldered the burden of the oil price surge with the help of government bonds.
“I know that the price increases we have had to announce today will not be popular, even though they are only modest,” Mr Singh said.
India, which imports more than 70 per cent of its oil needs, has been under pressure to increase fuel prices for months. But with inflation breaching 8 per cent in recent weeks, well beyond the central bank’s 5.5 per cent comfort zone, the government has delayed the move.
With an election due in less than a year, the Congress party-led United Progressive Alliance coalition government fears inflation will hurt the nation’s hundreds of millions of poor.

In NEPAL Last week, when the state-owned and bankrupt Nepal Oil Corporation (NOC) issued an SOS call saying it was totally unable to supply fuel without government subsidy, the government responded by throwing Rs 800 million at it.
But that measure could not even help for a week. The NOC has once again warned that the crisis is going to deteriorate as its monthly losses have soared to whopping Rs 2.7 billion a month.
Fuel price in Nepal which is on the artificial life support unit it is soon to be dead .


what could be done to save the people from Himalaya to kanyakumari ??