OIL SUBSIDY IN ASIAN COUNTRIES

Today world economy is depend upon electricity and transportation, these are two major source of development of any country. If we look behind the scene of these two important sources one thing is common that’s oil.

If look at the graph of oil prices in last 15 years its shoot up from $ 15/barrel (1994) to $ 100/barrel (jan, 2008), nearly 700% surge in oil prices, it’s really a very dreadful sign for any country because each dollar increase hugely affected the whole economic cycle of any country.

Contrary to this trudge in oil prices there are some Asian countries which are providing oil to their countrymen at highly subsidized rate. There are stats which showed that governments are bearing huge cost for providing oil to their countrymen.

Look at the figures given below of some Asian countries.

If we compare the statistics of both graph and data given above international oil prices shoots by 700% while in these asian countries maximum hiked by 167% for petrol & 193% for diesel in Vietnam, here we can see that the government of these developing countries are bearing huge burden on itself to move their country’s economy.