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CBS LINE Volume 4(4) Fuel Crisis in India and Its Macroeconomic Destabilising Effects Bhagat M Sanil Department of Development Studies University of Calicut The stability of an economy like India is closely linked to the availability of energy resources. In India, petroleum products are the backbone of transportation, industrial production and agricultural operations. If there is a fuel crisis, which means a disruption in the supply of petroleum products or a sharp increase in their prices it can pose big risks to the economy. These disruptions do not just affect the energy sector they can also destabilise the economy. India relies heavily on imported oil, which makes it very vulnerable to external shocks. Since India gets 85% of its crude oil from imports any changes in the global oil market can cause economic stress in India. If global crude oil prices go up, it can increase the BoT deficit and put pressure on the exchange rate. This can weaken the sector and m...