Preview

Meeb Assignment on 'Impact of Dismantling Administered Prices on Petrol and Diesel in India'

Better Essays
Open Document
Open Document
1922 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Meeb Assignment on 'Impact of Dismantling Administered Prices on Petrol and Diesel in India'
Impact of dismantling Administered Prices on Petrol and Diesel in India

Xavier Institute of Management Bhubaneswar (XIMB) EPWP Batch II (2011-12) Macro Economic Environment of Business (MEEB)

Prepared by
Name :- Priyanka Sharma Roll No:- U811026

Professor
Dr. Latha Ravindran

Date
03/Dec/11

1 | P a g e

INDEX S.No 1 2 3 3.1 3.2 4 5 6 Introduction Objective Detailed Analysis for crucial & main issues Need for deregularisation Impact of dismantling Administered Prices on Petrol and Diesel in India Observations Conclusion Bibliography Contents

Page 3 4 4 4 6 7 8 9

2 | P a g e

1.Introduction:In India fuel prices were controlled by government .Although government announced the dismantling of Administered Price Mechanism (APM) effective from 01/Apr/2002 in order to move towards market prices for petroleum products. In the context of the study, Administered Pricing Mechanism refers to the mechanism under which the prices of raw material, transportation and those of the finished products are regulated by government .In the case of Oil industry, the production, prices and distribution of the crude oil and petroleum products were being administered by Ministry of Petroleum & Natural Gas. The APM has been dismantled in phases which started from April’98 and got completed by the end of March’02. Dismantling of APM means decontrolling or deregulating of the petrol prices that means government will no longer be subsidizing petrol prices and the prices will be purely linked to the international crude prices .In the case of diesel , though ,it will be only partially regulated (the reason may be to avoid sudden hike in inflation) . LPG and Kerosene will continue to be subsidized. Below Graph showing the hike of Petrol prices from 1989 to 2011 drawn for India’s 4 Metro Cities

Delhi Petrol Prices Trend

Mumbai Petrol Prices Trend

3 | P a g e

Kolkata Petrol Prices Trend

Chennai Petrol Prices Trend

2. Objective:Objective of


Bibliography: The following links /web pages were highly useful in collecting data and for interpretation                  http://www.petroleum.nic.in http://economictimes.indiatimes.com www.insigniaconsultants.in www.rediff.com www.thehindu.com http://expressbuzz.com http://www.investopedia.com http://www.tflguide.com http://www.mypetrolprice.com http://www.bloomberg.com www.crisil.com http://www.indiastudychannel.com http://www.yourmoneysite.com www.rbi.org.in www.cartoonstock.com www.simon-cooper.net/ www.monkeywong.com 9 | P a g e
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Article Analysis Paper Essay Example
    • 1290 Words
    • 6 Pages

    Article Analysis Paper Essay Example

    This paper will define terms such as economics, micro economics, the law of supply, the law of demand and the factors which lead to a change in supply and demand. This paper will also summarize the article and explain the basis for the trends in consumption patterns as discussed in the article and describe what occurred to change the demand for crude oil, or the supply of crude oil and market prices of such crude oil.…

    • 1290 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Bp- Pest Analysis
    • 597 Words
    • 3 Pages

    Bp- Pest Analysis

    The consumption pattern of the people is key here, today they may decide to substitute oil for gas and tomorrow vice versa. The protection or promotion of the interest of the consumer is a somewhat hard as they are unstable.…

    • 597 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Diesel Is the Future
    • 710 Words
    • 3 Pages

    Diesel Is the Future

    The rising diesel price. (2008, April). Oil & Gas Journal, 106(16), 17. Retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/274351217?accountid=35812…

    • 710 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Internal and external forces that impact organizational behavior.
    • 1801 Words
    • 6 Pages

    Internal and external forces that impact organizational behavior.

    The economics of the world has a significant influence on both the modern business and the organizational behavior of that business. For any company to be successful, it is crucial to understand the elements that can affect the economy…

    • 1801 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Facts About Petrol Prices and the Australian Fuel Market
    • 1902 Words
    • 8 Pages

    Facts About Petrol Prices and the Australian Fuel Market

    Crude oil, petrol and diesel are different products and are bought and sold in their own markets. Each market is typically regionally-based and there are linkages and transactions between regional markets. Prices in regional markets reflect the supply and demand balance in each market and the physical characteristics and quality of each commodity. Prices in regional markets can be volatile and can move in different directions from each other.  This can be due to the impact of factors and events unique to one market – such as supply and demand pressures in a region, hurricanes, wars and civil unrest. This is why focusing on relevant markets and longer term price trends is more important than daily or week-to-week price movements. Australia’s regional market for petroleum products is the Asia-Pacific market. Key crude oil pricing benchmarks for the Asia-Pacific market including Australia are Tapis, Dated Brent and Dubai – not West Texas Intermediate (the US market benchmark) widely reported in the media. The Singapore price of unleaded petrol (MOPS95 Petrol) is the key petrol pricing benchmark for Australia.  To meet Australian fuel demand, around 15-20% of petrol is imported (mainly from Singapore). Singapore is the regional refining and distribution centre and among the world’s largest. If Australia’s petrol prices were below Singapore prices, Australian fuel suppliers would have no commercial incentive to import to Australia (because sales of that fuel would be at a loss here). In addition, Australian refiners would have an incentive to export production. ‘Refiner margins' are the differences between product prices and crude oil prices – both of which are set by the market, not by oil companies (e.g. a Singapore petrol ‘refiner margin’ = MOPS95 Petrol price minus the relevant crude oil price).…

    • 1902 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    The Effects of High Gas Prices
    • 649 Words
    • 2 Pages

    The Effects of High Gas Prices

    First of all, the rising prices of gas, a critical input in almost all production processes, will trigger the price hikes of most consumer and industry products: the inflation. For example, after the gas price increases, the costs of transportations also increase. Raw materials need to be transported into factories before they become final products; all final products need to be transported to retail stores where consumers can buy them. Therefore, the increasing costs of transportation will directly be added in the prices of consumer products. Moreover, the high gas prices generally are led by the high crude oil prices, and the crude oil is the raw material of most important chemical products such as nylon and synthetic polymers, which are inputs of most industry products. Consequently, the hike of the crude oil price also leads the rises of the industry product prices. The pervasive inflation is inevitable.…

    • 649 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Exxonmobil: Social Responsibility in a Commodity Market
    • 689 Words
    • 3 Pages

    Exxonmobil: Social Responsibility in a Commodity Market

    Petrol is one of the most demanded products on earth. Because of this, not only the petrol prices are…

    • 689 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Economics: Implementation and Removal of a Specific Subsidy
    • 751 Words
    • 4 Pages

    Economics: Implementation and Removal of a Specific Subsidy

    Graph 1 shows the removal of the specific subsidy for diesel. The demand of diesel is relatively inelastic. Price elasticity of demand is a measure of how much the quantity demanded of a product changes when its price changes. As we can see, the market is in equilibrium with Q1 being supplied and demanded at a price of P1 (₹47.15/litre). On removal of subsidy XY (₹9.60/litre), the supply curve shifts vertically upwards from S1 – subsidy to S1. The producers will increase their price and lower output until the market equilibrium is regained, which is at a price of Pe, where Qe is both demanded and supplied. The price of diesel rises by XW. The income of producers will decrease from DVQ10 to PeXQe0. The government succeeds in saving DYZP1.…

    • 751 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Increasing Gasoline is the Best Choice
    • 359 Words
    • 2 Pages

    Increasing Gasoline is the Best Choice

    On the issue increasing gasoline price, I agree with certain reasons. First, by increasing gasoline price we can allocate our fund in the various fields, such us our infrastructure, education, health, etc. As we all know that Indonesia’s gasoline price is cheaper than the other country because there is a government subsidy. But the subsidy being blunder for us because not only people in lower class but also people in upper class using this subsidy. Our Minister of the Economy, Hatta Rajasa, said that government action to raise fuel prices is a good solution to make this subsidies right on target. Second, the impact of increasing world oil price make the government takes this policy. President Susilo Bambang Yudhoyono has said, the gasoline price assumption in APBN 2012 must be adjusted, the government no longer possible to assign gasoline price of Indonesia (ICP) U.S. $ 90 per barrel, because the ICP price now exceeds U.S. $ 115 per barrel. We must be able to realistic, every rupiahs spent on gasoline subsidies, actually could be used for something more useful to build our infrastructure.…

    • 359 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Comprehensive Study of Three-Wheeler- a Bajaj Auto Perspective
    • 9044 Words
    • 37 Pages

    Comprehensive Study of Three-Wheeler- a Bajaj Auto Perspective

    Title: Comprehensive Study of Three-Wheeler Automobile Market- A Bajaj Auto Perspective Supervised by: Mr. Shridhar Bhat Name of student: Vinay Kalal PGDM No: 11119…

    • 9044 Words
    • 37 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Group 04 Mahindra
    • 844 Words
    • 9 Pages

    Group 04 Mahindra

    MAHINDRA & MAHINDRA: CREATING SCORPIO GROUP-4 AAKASH | SRIDHAR | NEHA | CHAITANYA | TRISHUL | VIVEK GLOBAL AUTOMOBILE INDUSTRY  Industry was dominated by: ◦ Big three(GE, Ford and Daimler Chrysler group) ◦ Big two(Volkswagen, Peugeot) ◦ Japanese players (Toyota, Nissan and Honda)  Japanese model : ◦ emphasised on close working relationship with suppliers.…

    • 844 Words
    • 9 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    A Case Analysis of the Turnaround of a Mangalore Fertilisers Pvt Ltd
    • 4530 Words
    • 19 Pages

    A Case Analysis of the Turnaround of a Mangalore Fertilisers Pvt Ltd

    References: [1] Annual Reports of Mangalore Chemicals and Fertilizes 1990-2005. [2] Bevar W.H (1966, Financial Rates as Predication of failure. Journal of Accounting Research pp.71-111. [3] Devendra Babu. M. “State level Public sector Reforms Status and case studies “Journal of IPE, 23 (1&2). 2000. [4] Edwin.I.Altman (1968) Financial Ratios, Discriminant Analysis and Prediction of corporate Bankruptcy. Journal of finance Vol 23. Pages. 589-609. [5] Fertilizer statistics – 2008-09 (Fertilizer Association of India (FAI) New Delhi. [6] Gupta L.C (1979) Financial Ratios as forwarding indicators of sickness, ICICI, Bombay pp 65-69 [7] Sastry K.S. (1994) Uses of ‘Z’ score in selective privatization in Mauritius - A note, Indian Journal of Finance and Research. [8] Sixty Years of Indian Industry; 1947 to 2007Growth Reforms and Outlook. Edited by Anup Chattejee, New century Publication, New Delhi – 2006. [9] Standing committee on chemicals & fertilizers 19th Report, Loksabha. Ministry of Chemicals and Fertilizes (2006-07). [10] Performance Reports of SPSUs published by the DPEs, GOK- 2002-03 & 2003-04 [11] R.K. Mishra. And C. Lakshmi Kumari, Performance of State level public enterprises in India -, Anmol Publications, New Delhi 2004. [12] Economic Reforms and Productivity Trends in Indian Manufacturing- Special Articles .Eco&Pol Weekly. Vol.xxxvi, oct 13-19 No. 41, 2001 [13] Privatisation: Theory and evidence, T.T. Rammohan, EPW, Dec29, 2001.vol. XXXV1.N0. 52. [14] R.K. Mishra and J. Kiranmal , Restructuring of SLPEsin India- A macro analysis : , The Journal of IPEs, vol.no.29, 3&4,2006. [15] Karnataka at a Glance, 2004-2005. Directorate of Economics and Statistics, Bangalore. [16] Srinivasan .T.N.1992, Privatisation and deregulation. EPW, XXXV11, No 15&16, 11-18thApril. [17] Rangarajan committee Report of the Committee on the Disinvestment of shares in PSEs April 1993, GOI. [18] Anne O. Krueger, 2002: Economic Policy Reforms and the Indian Economy, oxford India.…

    • 4530 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    “To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”
    • 1694 Words
    • 7 Pages

    “To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”

    “To what extent the hike in excise duty has impacted the Demand of SUVs in India in the first 2 quarters of 2013?”…

    • 1694 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Arguments for and Against Business Ethics,
    • 11018 Words
    • 45 Pages

    Arguments for and Against Business Ethics,

    Paper No. 201-II 202-II 203-II 204-II 205-II 206-II 207-II 208-II Title of the Paper(s) Macroeconomic Foundations Presentation Skills Workshop Principles of Management Business Statistics Economic and Business Legislation Data Base Management Systems Corporate Accounting Training Report External Marks (Theory) 70 50 70 70 70 50 70 Internal Assessment Marks 30 50 30 30 30 30 Practical Marks 50 Total Marks 100 100 100 100 100 100 100 100…

    • 11018 Words
    • 45 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Oil Futures - India
    • 265 Words
    • 2 Pages

    Oil Futures - India

    The Indian commodity futures volumes have grown 5.5 times from Rs.20.53 trillion in 2005-06 to Rs.112.52 trillion in 2010-11. Currently, the average monthly volume on the Indian commodity exchanges is Rs.6 trillion. Crude oil accounts for nearly 40% of the global energy demand and Indian crude oil demand in February 2012 has risen to the second-highest level on record, supported by robust diesel and gasoline consumption. In 2012, the demand for Organisation of Petroleum Exporting Countries' (OPEC) crude is projected to average 30 million barrels per day (mb/d). The most recent monthly data shows there has been robust growth in trading in crude oil derivatives also. Today "Crude Oil" is considered as world largest traded commodity. It's there on the hit list of active traders. Retail and small traders can also enjoy the exposure of such vast market by paying a minuscule amount as…

    • 265 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics