Essay on petrol price hike in india

The only thing that can be reduced is weekend driving to some extent," said Suresh Sadagopan, certified financial planner and founder of Ladder 7 Financial Advisory.

Causes of increase in petrol price

Therefore, goods such as foodstuffs and other necessities also become more expensive. Greater fuel prices will result in an increase in the value of the dollar ,therefore, oil exporters invest their windfall earnings in US dollar controlled assets and transactions demand for dollar rises. For valuable and less weight products such as electronics shipping costs are tolerable. Styles vary a lot throughout the country. What Rising Prices Do It has commonly been held that price rises are a normal part of a growing economy. The part of this earning will be offset by losses from lesser demand for exports because of the economic downturn suffered by trading partners. Higher interest rates decline the disposable income of consumers due to the higher debt service costs.

Stop blaming government and think how to solve it. With the present Ethnic Conflict In Afghanistan Essay words - 10 pages countries started the price of fuel was expected to stabilize because more fuel was imported than before, and the problem of fuel shortage was solved in many places; but unlike people's expectations the price further increased.

The increase in fuel prices has also devastating influence on Pakistan, Ethiopia. Aircraft firms like Aircastle are damaged by increasing oil prices.

Price hike article

Commodities such as petroleum, which are imported to a large extent, are subject to international prices. It is obvious that, there is a strong correlation between energy demand and economic prosperity. For example, when oil prices rise globally, it becomes more expensive to import oil. May 25, Decontrolled Petro-Price Regime: history Based on the recommendations of the Kirit Parikh Expert Group, the price of petrol was made marketdetermined with effect from June 26, , in a bid to introduce a viable and sustainable system of petroproducts pricing. What prompted the move? From a supply perspective, factors such as uncertain weather, lack of cold storage and lack of warehousing facilities play a huge role in pushing prices up. This has obviously sent shock waves to the common man who is trying hard to make both ends meet. If the price of oil products is not increased, India will keep on facing this deficit. Rising fuel prices lead to high shipping costs. Due to this, OMCs lost near about Rs 43, crores in the past fiscal due to under-recovery. The tax revenues decline and the budget deficit rises because of the rigidities in government spending that increases interest rates.

This is one of the monetary policy that the government conducted to increase demand and stimulate the economic growth. Depreciating rupee is one of the major reasons of the increase in petrol price in India.

rising fuel prices essay

However, recent years have seen exponential hikes in prices — hikes that are affecting those Indians who were already at subsistence level. Costs of fertilizer raw materials have been rising while rose production of staples rises demand.

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4 ways in which diesel, petrol price rise will impact you