November 27, 2013
In light of the nuclear deal that has been signed between Iran and USA, it is very natural for countries that import oil directly from Iran to wonder about the cost of fuel prices and whether it will increase or decrease. So when you are puzzled, you naturally want answers or want to engage in a discussion from which you can get answers!
So to those of you who wish to engage in some friendly Economics jesting, let’s move forward!
This is how we proceed with our thoughts. It will range from technical and necessary to wild assumptions made only to make our rudimentary understanding of the Nuclear Deal easier!
So let’s begin!
A few countries that import oil directly from Iran include:
To refresh your memory, here are some of the key highlights of the Iran-USA Nuclear Deal:
Now, to make things interesting, we shall project a hypothetical situation based on various assumptions. The assumptions are based on changes that might come about with the Iran-USA Nuclear Deal, such as
A few more facts and then we get back to the fun stuff!
Coming closer home, let us make it more fun and see how it might affect an individual directly.
Let us take India as an example. The cost of petrol in New Delhi, India since September 2013 is
Let us plot a graph based on our wild assumptions!
This would imply that the expenses of any given individual who is required to buy 40l of petrol per month would decrease. Let us take another graph to demonstrate the same.
This in turn implies greater savings, which in turn implies more vacations!
So as you can see, the Iran-USA Nuclear Deal might just end up being easy on the pockets of citizens in India! Not only will it help aid the Indian economy and diplomatic relations, it will also have a more visible and positive impact on the individual.
This friendly Economics banter wasn’t all that bad, was it? For all you know, something along the same lines might actually happen in the following months!
If you wish to add anything further to this post, if you have queries or comments, feel free to start a discussion thread below!
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