Petrol price in india

Managerial Eco Project. It has all the information on Petrol prices in India. In India, the energy sector plays an important role. The growth of our economy is largely dependent on the energy sector.

1. Project by Group – 05 Sanchari Mandal 17 Ashish Kumar Bhati 70 Gautam Sharma 78 Ankita Sanyal 81 Megha Das 83

2. INTRODUCTION In India Energy Sector is primary as our economy growth depends on it During Pre- independence era petroleum industry was strongly dominated by private companies However, post-independence era it is controlled by the Government Oil is the magic word that is always on the news The word ‘petroleum’ is derived from two Latin words ‘ petra ’, which means rock and ‘oleum’ which means oil. Petroleum is alternatively referred as oil or crude oil.

3. Crude Oil History (Petroleum) P re-Independence period (1866-1947): The first commercial i al discovery of crude o n the country was made in 1889 at Digboi (Also known as Oil City of Assam), Assam, India A new company called the Assam Oil Company (AOC), founded in 1899 By 1931, crude oil production had increased to about 250,000 tons per year, and exploration work spread throughout the Assam- Arakan region Post-Independence Period (1947-1960): The Government of India ( GoI ) recognized the importance of oil and gas for its rapid industrial development and its strategic role in defense The development of the public sector with this goal in mind at the end of 1955, the Oil and Natural Gas Directorate (ONGD) was created (subordinate body of the Ministry of Natural Resources and Scientific Research) In October 1959, the ONGC was transformed into a statutory body by an Act of the Indian Parliament, further expanding the powers of the commission

4. Crude Oil History (Petroleum) Economic Liberalization 1991: In February 1994, the ONGC was reorganized as a limited company under the Companies Act Post Liberalization: During 1993-94, ONGC production on the west coast reached a minimum of 15.37 million tonnes , prompting ONGC to establish joint ventures to develop the Ravva , Mid and South Tapti, Mukta and Panna field The DGH was created by Government decree in April 1993, giving it some management consulting functions, but not development functions

5. Administered Pricing Mechanism (APM) From 1970s to 2002, there was an Administered Price Mechanism (APM) system in place in oil sector. Under this system, the oil and gas sector was controlled at four stages i.e., production, refining, distribution and marketing. The supply of raw material to the refineries at point of refining was done at a pre-determined price called ‘delivered cost of crude’. The overall regime was based on the principle of allowing a pre-determined return on investments to the oil companies.

6. After the new Industrial Policy of 1991, the government first opened refinery sector for private participation. This led to emergence of one of the largest players – Reliance Refinery. The decision to move from a industry to a market driven petroleum sector was the most important decision which resulted in the dismantling of the Administered Price mechanism (APM) in April 2002.

7. Dynamic Pricing Mechanism (DPM) The Government of India has launched a new nationwide fuel pricing model from June 2017. In this model, fuel prices change on a daily basis, which is called D ynamic F uel P ricing. The change in policy in India from a government regulated system to a dynamic system is to bring parity with international petroleum product prices. Another goal of this change is to limit the price speculation in the petroleum product market in India.

8. To achieve broad objectives on a shift from APM to DPM, the GoI suggested that the entire oil sector should be completely opened up: Removing all restrictions on imports and exports and on sourcing type of crude oil product pattern. Allowing oil companies to decide on development of : a. I nfrastructure, b. Mode of transportation, c. Selection of marketing areas, d. A ppointment of dealers/distributors, e. A mount of commission payable to intermediaries f. T he sales volume, purely on commercial considerations. Ensuring fair competition by setting up a regulatory body to control the market in a transparent manner. Setting up of an oil commodity exchange to provide an institutional market for exchange of petroleum products at market related prices

9. FUEL ECONOMICS

10. IMPACT Of PETROL PRICING ON PEOPLE : According to a survey around 50 percent Indians are cutting on their other expenses to manage their spending on fuel prices. Another 15 percent are dipping into savings to pay for petrol People owning private vehicles are now taking govt transport because they can’t afford petrol It should be noted that an increase in fuel prices has a direct impact on the cost of essential goods that need to be transported over long distances ON BUSINESS People in business are also getting effected as transportation is costing a lot. Fare prices of even Govt are also increasing High prices of petrol always tend to kill the middle man

11. Remedy to the surge in prices Remedy can be found in the reason, t he main reason for the rise in fuel prices in the country is the high central and state tax rate. Even when international crude oil prices collapsed in 2020 due to lower demand, Indians continued to pay higher prices for gasoline and diesel due to various taxes levied. Therefore, altering and curbing the various taxes can remedy the urge in fuel prices can defiantly help everyone

12. CONCLUSION High population growth which gives rise to consumption in every sector, also increases the price of fuel due to its consumption use. People suggest that introduction to smart cards, promotion for the use of public transport and subsidies from government can control prices in the economy.

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