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India is facing a massive energy crisis as oil prices edge higher and LPG supply drops. Finance Minister Nirmala Sitharaman has announced a Rs. 57,381 crore stabilisation fund to address the economic crunch.
Crude oil prices have almost doubled in a few months, with prices reaching nearly $137 per barrel from $69 in January. The conflicts in the Middle East have pushed the prices higher as important shipping routes are now blocked, limiting India’s fuel supply.
The Sitharaman fund aims to protect the economy from such global shocks. The government plans to control sudden price rises and support key sectors. The fund will also provide financial support if the situation worsens.
Experts have already lowered India’s GDP growth estimates to 6.7% in FY27. Some reports suggest it can drop to 6% if oil prices stay high for long.
Higher crude oil prices also affect India’s overall finances. The current account deficit may increase if oil stays expensive. This can put pressure on the economy.
India depends on imports for most of its LPG needs. A large part of the supply comes through affected sea routes. This has lowered the availability of fuel across the country.
LPG sales have dropped sharply in recent weeks. Its shortage has affected homes and restaurants. Many food outlets have started using coal and wood for cooking. This has increased cooking time and costs.
Several restaurants have even shut down temporarily. Industrial areas are also under pressure due to irregular LPG supply.
The government has asked refineries to increase LPG production. While domestic output has improved, it is still not enough. LPG makes up a small part of total refinery production. Importing LPG from other countries is delayed and expensive.
The Sitharaman fund will help manage this crisis. It will support fuel price control, subsidies, and supply chain stability. It will also help protect consumers from sudden price shocks.
Officials have said that necessary steps are being taken to reduce the impact of high oil prices and the LPG shortage. The fund focuses on ensuring steady growth and supporting people during this crisis.
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