Increment in OIL Prizes is bad for Economy

Increment in OIL Prizes is bad for Economy

Oil is one of the most important gift on earth for us by GOD, in addition, today in which modern world we live is totally dependent on oil. Oil naturally found as in shape of crude oil, then it is refined into 27 plus different categories, those have different uses in different areas, for example, high octane fuel is used in jet plans, diesel used in heavy traffic, ferns oil used in electric plants to produce electricity, petrol used in bikes, cars, and many different type of oil used in different types of machines. In short we can say that now every business, product, machine and industry, even every sector is now dependent on oil. In summary we can say that oil became the basic need of the world. Oil prizes are decided by OPACK, in Pakistan oil prices are decided by OGRA. For the reason which is why oil prices are decided is on the basis of demand. Changes in oil prices are to manage demand and supply, due to these changes in oil prices all sectors effects directly. First, all transportation industry, when oil prices increase they increase their rents, second all manufacture companies, by increment in oil prices their manufacturing and transportation cost increases, third, local person, by these incremental changes a single common person effects also, because all the increment delivered towards them by companies which is why sometimes companies also become in loss, in conclusion, all business sectors effect by these incremental changes in oil prices which is bad for economy of any country.