Gist of Editorials: Uncertain Times | GS – III


Relevance : GS Paper III


Why has this issue been raised?

Recently, USAdecided not to extend the 180-day waiver to India to purchase oil from Iran.

The price of Brent crude

  • The US announcement caused the price of Brent crude oil to witness a sudden jump.
  • The price of Brent crude has been rising steadily in the last few months.

Challenges faced by India

  • India will have to find alternative oil suppliers.
  • Higher oil prices will negatively impact current account deficit, fiscal deficit and inflation.
  • Higher oil prices also encourage OPEC torestrict oil supply.

Way forward for India

  • India needs to diversify its supplier base.
  • It needs to increase domestic sources of energy supplies.
  • Opening up the renewable energy sector for more investments.

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