Russia-Ukraine conflict: If war breaks out between the two countries, there are many essential commodities that are bound to rise in price.
Russia-Ukraine Conflict: The Russia-Ukraine Crisis could have an impact on the people of India as well, because if war breaks out between the two countries, there are many essential commodities that will rise in price again. . While tensions are rising between Russia and Ukraine, the world economy is already in a state of disarray.
According to India Today, experts expect prices of many products, from natural gas to wheat, to rise in the near future. Here you know that if the tension between these two countries continues to rise like this, then what will be the effect on all of us in the coming days.
Natural gas prices could rise
The Ukraine-Russia crisis pushed Brent crude to .7 96.7 a barrel, the highest level since September 2014.
Russia is one of the largest producers of crude oil. Due to the current crisis, the price may rise by more than ড 100 per barrel in the coming days. The rise in crude oil prices will have an impact on world GDP.
An analysis by JPMorgan found that a $ 150 increase in oil prices would reduce global GDP growth to just 0.9 percent.
Russia-Ukraine Conflict: What Impact Will US-Europe Sanctions Have on Russia?
The direct share of crude oil-related products in the Wholesale Price Index (WPI) basket is over 9 percent. Therefore, with the rise in Brent crude prices, India’s WPI inflation will rise by about 0.9 percent.
According to experts, a war between Russia and Ukraine could increase the price of domestic natural gas (CNG, PNG, electricity) tenfold. Subsidies on LPG and kerosene are expected to increase as crude oil prices rise.
Petrol and diesel prices will go up
In the past, petrol and diesel prices have skyrocketed across India due to high crude oil prices. The country has seen record highs in fuel prices in 2021.
If Russia-Ukraine crisis continues, India may raise petrol and diesel prices again.
Oil accounts for about 25 percent of India’s total imports. India imports more than 80 percent of its oil demand. The rise in oil prices will have an impact on the current account deficit.
Wheat prices may rise
Experts fear that if the flow of food grains from the Black Sea region is hampered, it could have a major impact on food prices and fuel inflation.
Russia is the world’s top wheat exporter, while Ukraine is the fourth largest wheat exporter. The two countries account for one-fourth of the total wheat exports worldwide.
According to a recent UN report, food prices have risen to their highest level in more than a decade, largely due to the effects of the epidemic on the supply chain. Fuel and food prices are expected to rise in the coming days.
The price of metal will also go up
The price of palladium, a metal used in automatic drainage systems and mobile phones, has risen in recent weeks amid fears of sanctions on Russia. Russia is the world’s largest exporter of palladium.