Victims of fuel price hike
The world must brace for another recession due to unprecedented oil price. Fuel price has soared to such a level that it has surpassed all previous records.
In Tokyo, G-8 members along with emerging giants such as China, India, Malaysia sat to hammer out plans to cope with soaring oil prices. But the meeting ended without any substantive outcome. According to the experts, the major reason behind the rise of fuel prices is inadequate supply in proportion to its growing demand. Supply can be increased by stepping up production. But the world's biggest oil producing group 'OPEC' has already rejected any plans to step up production, saying that it would be foolhardy. Soaring oil prices have a domino effect on the economy. Statistics show that an average American uses 34 times more petroleum than an Indian and 12 times more than a Chinese. So it lends credence to the idea that the major portion of fuel is swallowed up by the western countries.
The developing and undeveloped countries are left in the lurch. Soaring fuel prices have forced many countries to cut back fuel subsidies. So general commuters have to bear the brunt of it all. Cutback on fuel subsidies also stimulates the price spiral.
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