China, India, Indonesia, Malaysia, Thailand… most of asian countries are (pick your favorite) cheating, playing with fire, defying gravity laws applied to economy.
Bottom line : asian economies rely on cheap energy. Cheap oil.
All of them use subsidy systems, more or less sophisticated. Fair enough.
But since oil prices are on a strong upward trend, the pressure starts to mount on those systems… Scary noises can he heard from their infrastructures… Could we reach a breaking point ?
Here is an article about the situation in India. Surreal. The same thing happened in China recently. Prices capped. Oil companies and refiners started to complain. Then shortages… and eventually the chinese authorities agreed on a 10 % increase.
0 Responses to “India, oil crisis : “public sector oil companies cannot continue to bleed indefinitely.””