Oil Pricing Policy

It’s Being a year complete of 2014 government, a great success to the Government. It’s Being a year we have seen many changes in our country, such as Reforming the planning Commission by just changing it’s name into NITI aayog, First Executive decision of increasing Rail Fair, Preparing to Represent Land Aquisition Bill third time and the oil pricing policy of 2014 government.

In recent few Months of 2014 government we have seen a great fall in prices of petrol and diesel in Indian Market, but the truth is these were the effects of decreased Demand of petrol and removing of ban on IRAQ by OPEC. Which leads to decrease in demand as well as increase in supply of crude oil in International Market, which decreases its equilibrium Price.

But what about the benefits to be given to Public, Government will be saying the exchange rate of dollar is increasing in international market, But it is followed by the decrease in FDI. From only last two months the price of Crude oil is being increasing in international market but if we compare the determinants like crude oil price in international market, Dollar INR Exchange rate and final price of petrol. Following are the changes..

The Crude oil price in International market is being decreased by 40%(Approx.) from May 2014 to May 2015.

The Dollar Inr Exchange rate is being Increased by 10%(Approx.) from May 2014 to May 2015.

The Petrol price in Indian Market is being decreased only by 10%(Approx.). Which must be about 20%(Approx.) less, moreover government had increased Rs. 8/- litre Excise Duty on petrol.

At last we expect Government to take efficient steps on this issue. And equate the Prices as it effect the budget of “AAM AADMI”.

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