With inflationary pressures continuing to be high across the board and the huge upmove in commodity prices not showing any signs of cooling off it is important to see who is impacted by inflation the most and how the inflation of crude prices will impact various economies.
At a price of USD 100 per barrel the total consumption of crude oil in India at a consumption rate of 3 million barrels per day is USD 110 billion per annum. In the current year i.e. April -March 2012 Indias nominal GDP is expected to be around Rs 90 lakh crores i.e. USD 2 trillion. As such oil consumption would be around 5.5% of GDP. Given the fact that nominal GDP growth in India is likely to average 15% and population growth is around 1.5% per annum the per capita income growth would be 13.5% pa. Similarly China consumes around 8.3 million barrels per day of oil and as such total consumption will be USD 300 billion pa.