US move devastating
The recent move by US to discontinue oil import waiver from Iran whilst reiterating its stand to end the Significant Reduction Exceptions (SREs)...
The recent move by US to discontinue oil import waiver from Iran whilst reiterating its stand to end the Significant Reduction Exceptions (SREs) renewals. The SREs were granted by US with a caveat to renew after a 6-month period post November 2018 has only come to an end without any hope for further renewal.
Though India, which has been impacted by the non- renewal of waiver will be now be hit hard owing to the current government's tenure ending shortly. The non- renewal of waivers will adversely impact the oil prices cascading to increase the petrol/diesel rates a move which will be inevitable for the new government to be formed by June.
India should be highly worried due to non-availability of abundant oil resources at home and its heavy dependency on imports especially from Iran for its survival in the economy. At a time when call to the push to switch to EVs is not high in the economy, the petrol prices have now severely impacted the markets affecting the further prospects of automobile industry.
The de-facto Government under the shadow of elections should tread cautiously and make sufficient plans to in the absence of non-renewal of oil waiver. The Diplomatic patrons and industry experts should now strive hard to tirelessly convince the new government and US to negotiate in an amicable manner. Thus, the move will help the situation to return to the normal and avoid inevitable price rise post elections and formation of new government.
-Varun S D, Bengaluru