Have you ever wondered why increased fuel prices and other essentials lead to protests worldwide? Fuel prices are rising rapidly. Long gone are the days of cheap fuel; inflation proceeds to hit individuals over the nation. As the world learned how to accommodate safety measures put in place to combat the spread of Covid-19, energy demands rose in 2021, causing prices to increase across the globe.
Why are fuel prices rising?
Both demand and supply have likely exerted pressure on the oil price rise. The global demand for fuel prices is on the rise. Some of the primary reasons for the increase in prices include:
- Nations like India and China are advancing in economies, industrialisation and urbanisation. Thus, contributing to high fuel demand.
- Russia is the world’s second-largest producer of oil and natural gas. Because of the conflict between Russia and Ukraine, Russian petrochemical products are sanctioned, increasing market prices.
- The prices of petrol and other petroleum products vary according to the local government policies, which impose taxes on fuel.
- Petrol and diesel transported to longer distances to cities or regions farther from depots will be priced higher than the places nearer to the oil companies’ storage area.
How does fuel prices increase affect inflation?
Oil is 3-4% of global GDP. If the GDP is twice expensive tomorrow, then this will have an impact on inflation. An increase in fuel prices almost impacts everything. An increase is not only seen at the gas station but will be seen in all the goods and services we use as oil is the energy source and is used in the transportation of many things.
The fuel is one of the costliest compared to neighbouring countries like Pakistan, Bangladesh and Sri Lanka. However, the government has over the years added to excise duty on petrol, making it expensive for consumers.
The New PNG and CNG Price Hike in NCR.
The fear linked to the rise of petrol prices in India seems to be never-ending. The Indraprastha Gas Ltd (IGL) raised the compressed natural gas (CNG) and piped natural gas (PNG) prices in the capital and neighbouring townships by nearly 4 per cent and more than 10 per cent, respectively. Economic growth in India has also led to increased demand for petrol and other essential fuels in India.
The prices of petrol and petroleum products vary according to the local government policies that impose fuel taxes. When the government of India raises fuel tax rates, the companies also increase the price to recover losses and maintain marginal profits.
Switch to biomass with OBR
Undoubtedly, traditionally used fossil fuels are running out and are less environmentally pleasant. With oil and gas prices rising, the industries are finally looking for cost-effective and convenient alternatives. However, the company may find making such a vast transition challenging. But now, the industries need to sit back and relax. Steamax introduced oil to biomass Retrofit kit (OBR) that can convert diesel or gas-red boilers to biomass resulting in zero carbon emissions, thus maintaining a sustainable and pollution-free environment. We have just one mission- to convert every industry to clean and carbon-neutral biomass fuels irrespective of their size. With the kit, you can:
- Save 20 to 50% savings on fuel costs.
- The OBR kit consists of an auto fuel system and ash removal system.
- Kit results in zero carbon emissions.
- No need for IBR approval.
- It can fit gas/oil-based systems.
Above all, we solely take responsibility for providing the desired service to our end customers. Reach out to us and understand the unleashed power of biomass. Contact +919315124803 or Email: Info@steamaxindia.com for more details.