Islamabad, September 30, 2021 (PPI-OT): Chairman PRW Brigadier (retd) Muhammad Aslam Khan on Thursday said the global economic recovery is under serious threat as an energy crisis is engulfing the world. The global energy crisis will damage the global economy and open flood gates for inflation hitting the masses, he said.
Aslam Khan asked the government to take steps to save the GDP, reduce the cost of doing business and shield the masses from price shock as they are already reeling under inflation. In a statement issued here today, he said that energy supply failed to catch up with the global recovery resulting in shortage which triggered a price hike.
Now, oil prices are at a three-year high, coal prices are at a 13-year high while gas prices continue to climb making the production costly. He said that prices will jump at a new speed when winter sets in which will intensify the crisis as surging demand and tight supply will continue to fan the crisis.
The winter will result in a surge in demand for oil by half a million barrels which will be a nightmare for oil-importing countries, he observed. The price of gas has already increased from petrol while experts have predicted that oil price can escalate to $90 while coal price can almost double to $190 per tonne.
The biggest importers of oil, China and India have tried to cool down oil prices but failed and now many countries are considering to temporarily shut heavy industries with massive consumption. It may be mentioned that oil prices slumped at the start of the pandemic as lockdown wiped out demand but demand has been rising in recent months as economies around the world have started to reopen.
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