Rise in Crude Oil Price Affects Common Man’s Wallet
by Middle class cannot afford to pay high price for petrol.
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In the recent years, there has been much discussion and negotiation on the crude oil price. Global recession, labor strikes, political instability, terrorist attacks, Iraq and Afghan war have made a negative impact directly or indirectly on the crude oil price. The crude oil is an essential commodity like wheat, corn and maize. Crude oil helps many industries to meet the demand for gasoline, airline fuel, liquid gas for domestic cooking and for automobile sector which run with petroleum. Crude oil is an essential raw material for many petroleum and petroleum based products.
In the year 2007 and 2008, the price of crude oil in the world oil market reached up to $ 125 USD and there were many problems in supply and demand. OPEC and non-OPEC nations have agreed on several terms to stabilize the production levels but due to several reasons, the crude oil price was beyond the control of OPEC.
For the present, crude oil price stabilized between 60 USD and 70 USD and is expected to maintain in the same range of price. But the point of emphasis is, the rise in crude oil price in international market affects the wallet of a common man, by increasing the petrol price per litre which is currently quoting at 1 USD.
People who use two wheelers and four wheelers are the most affected as they have to more money for buying petrol. There is a large pool of middle class whose income sources are very low and cannot afford to pay higher for buying petrol.
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