00:00Hi guys and welcome to DriveSpark and welcome to another video and in today's video we have
00:04some disturbing news that is coming from the war that's happening thousands of kilometers away.
00:09Now what could suddenly happen? Could the petrol and diesel prices increase in India and at the
00:14same time can this accelerate the shift to electric vehicles? Now that's exactly the chain reaction
00:19the world could be witnessing right now and in today's video we're going to talk about all of
00:24this so stay tuned and we're going to tell you some important news about the petrol and diesel
00:28prices in India which is going to be covered at the end of the video. So let's begin. Now the
00:33current conflict in the Middle East is creating one of the biggest disruptions in the global oil
00:38market. Now a major flashpoint is the Strait of Hormuz which is one of the most critical oil
00:43shipping routes in the world. Now this narrow sea passage connects the Persian Gulf to the global
00:48market and a large portion of the world's oil supply travels through it. Due to the ongoing
00:53war tanker movement has been restricted and disrupted in this region and has slowed drastically.
00:59Some vessels even have switched off their tracking signals to avoid detection while crossing the
01:04conflict zone. Now in fact a tanker carrying a Saudi crude recently managed to reach Mumbai India
01:10only carefully navigating through the dangerous waters. Now because of this disruption global crude oil
01:15prices have already started to rise and at an alarming rate now prices could cross $100 per barrel.
01:23Where some extreme scenarios are pointing that the prices could go beyond $200 if the conflict
01:29actually worsens. Now India is the third largest consumer of crude oil in the world and the country
01:34depends heavily on the imports for its energy needs. Now around 88 to 89 percent of the crude oil that
01:40is
01:40consumed by India is actually imported. Now a significant portion of those imports come from the Gulf countries
01:46and many of those oil shipments pass through the Strait of Hormuz. So when a tanker movement slows down,
01:51Strait cross rises, the oil prices increase globally and India automatically has to feel the impact.
01:58Now higher crude price increases the country's import bill, it weakens the rupee and can eventually lead
02:04to a higher diesel or petrol price for consumers. Now even if the supply is disrupted temporarily,
02:10the uncertainty itself is enough to push up the shipping insurance cost, logistics cost and crude prices
02:16as well. So I was talking to one of my friends who actually owns a petrol pump and he was
02:20saying that the prices of
02:22petrol and diesel could go up by five to seven rupees but when they are not sure but definitely it
02:28will go up
02:29because of the conflict that is currently happening globally. Now what can this lead to? Now the EV market can
02:35see a big
02:36opportunity in this. But the situation could also accelerate a major transformation in India's
02:40automobile market. Do you think so? Let us know in the comment section if you think this war can lead
02:45to this.
02:46Now when fuel prices will increase, consumers will naturally start looking out for alternatives and one of the biggest
02:51alternatives today is electric vehicle. Well obviously the price of electricity will also increase because
02:56fuel is required over there as well but it will not be as drastic as the petrol and diesel prices
03:01that are
03:02going to be affected currently. Now EVs actually run on electricity instead of petrol and diesel meaning
03:06they are less affected by the fluctuation in the global oil prices in the current situation. In the past
03:13few years, India has already seen a strong growth in EV adoption thanks to the government initiative
03:17falling of battery prices and increase in the infrastructure of the charging facilities that they
03:23have taken. Now fuel prices spike again due to the global disruption. Many buyers who were earlier hesitant may
03:29finally decide to switch to an electric mobility. In fact geotropical shocks like wars, oil crisis and
03:35supply disruption have historically accelerated innovation in energy and mobility. Now for India
03:41this could mean that two things can happen at the same time. A short-term pressure on fuel prices but
03:46a
03:46long-term acceleration towards the electric mobility and that could translate to higher EV demands. It can also
03:52accelerate the infrastructure that could rapidly build and a strong EV sales growth in the country over the
03:58years. So as a war is happening far away in the middle east might not just affect the global politics
04:04but it
04:04could also affect the change in cars we drive in India. Now the real question is will the rising fuel
04:10prices push more Indian towards the electric vehicle faster and will they adopt it? What do you think?
04:15Let us know in the comment section. Well I hope you liked this video if you liked it and if
04:19this video was
04:19informative do give a like share and subscribe to all our social media channels and I will see you in
04:24the
04:24next video very soon.
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