Petroleum Engineers_Crude oil below 0$ and petrol at Rs.80.pptx

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1. Crude oil below $0! petrol at Rs. 80? Group No : 9 Subject : Engineering Economics Guided By : Mr. Chinmay Tinaikar Petroleum Engineers Aditya Gohad - 0120170022 Himanshu Patel - 0120170037 Siddharth Satbhai - 0120170060 Avadhut Patil - 0120170299

2. Contents Objective Scope of Project Background Introduction Of Project Empirical Data Data Collection Opinion Understanding Of Members References

3. Objective (Scope of Research) To study history of crude price across the globe To study the Crude oil supply & demand To study why Crude Oil Prices Went negative To study Taxation on Petrol/Diesel in India

4. Background Brent and WTI are global benchmark of crude oil pricing In mid of April 2020, WTI crude oil prices drastically went ‘– ve ’ due to lack of crude storage in US Global demand of Crude dropped due to covid-19 Spread and strict lockdown The Petrol Price in India still were at its peak around Rs. 80/ litre

5. Empirical Data

6. Empirical Data In Delhi dealers pay Rs 18.28 per litre for petrol, including the base price and freight. After levying VAT, excise and dealer commission, the retail price shoots up to Rs 71.26 for a litre. Similarly, for diesel, dealers pay Rs 18.78 a litre. Brent crude price is the international benchmark price used by the Organisation of Petroleum Exporting Countries (OPEC), while WTI crude price is a benchmark for US oil prices. Since India imports primarily from OPEC countries, Brent is the benchmark for oil prices in India. Most of the oil produced in Europe, Africa and the Middle East is priced according to the cost of Brent crude.

7. Opinion of Aditya - Crude oil Prices fallen around 50 % in last decade. Excise Duty and Value added Taxes are major factors in determining Retail Price Easies way for government to collect revenues without any investment

8. Opinion of Siddharth - Crude type (WTI and Brent) also determines the costing of fuel prices in India. India mainly imports crude from Saudi Arabia, African, European countries. These are known as OPEC, which’ve set Brent crude as the benchmark for prices. Hence in India Brent crude pricing is basis for fuel pricing. The WTI Crude forms basis of pricing in USA, whose prices fell below 0 USD. This too affected for fuel prices hike in India. Owing to fact that various taxes are being levied on fuel, just fall in crude price cannot cause direct fall in prices of petrol/diesel.

9. Opinion of Avadhut - Only WTI prices went negative. Brent prices also fallen but not below negative Saudia Arabia – Russia crude war Impact of pandemic on an oil Industry Developing Country like Indonesia, India, Pakistan will have benefits due to low crude prices

10. Opinion of Himanshu - India is 3 rd largest crude importing country with about 80% of its need Refinery are shifting toward petrochemicals production Fossil fuels are not enough to fulfill our raising future demands Now Its time to shift our dependence on green technology

11. References Why Brent oil won't follow US WTI futures below zero. https://economictimes.indiatimes.com/markets/stocks/news/why-brent-oil-wont-follow-us-wti-futures-below-zero/what-happens-at-expiry/slideshow/75289968.cms Wall Street tumbles as US crude extends fall adding to pandemic woes. https://www.business-standard.com/article/international/wall-street-tumbles-as-us-crude-extends-fall-adding-to-pandemic-woes-120042101539_1.html Petrol & diesel prices unchanged, crude remains soft. https://energy.economictimes.indiatimes.com/news/oil-and-gas/petrol-diesel-prices-unchanged-crude-remains-soft/78403765 When oil goes negative: How did it happen, what it means for Indian economy. https://www.business-standard.com/article/economy-policy/when-oil-goes-negative-how-did-it-happen-what-it-means-for-indian-economy-120042100740_1.html Oil in turmoil: How it impacts India. https://economictimes.indiatimes.com/markets/stocks/news/oil-in-turmoil-how-it-impacts-india/why-us-crude-turned-negative/slideshow/75290348.cms Explained: Why did oil prices turn negative in the US and what does it mean for Indian consumers? https://energy.economictimes.indiatimes.com/news/oil-and-gas/explained-why-did-oil-prices-crash-in-the-us-and-what-does-it-mean-for-indian-consumers/75274815 Over a barrel: how oil prices dropped below zero. https://www.theguardian.com/business/2020/apr/20/over-a-barrel-how-oil-prices-dropped-below-zero