- India imports over 70% of its crude oil needs due to insufficient domestic production and refining capabilities. Rising international crude oil prices and a weakening rupee have increased India's oil import bill.
- The government provides large subsidies on domestic fuel prices to shield consumers from high global prices, but these subsidies have increased the fiscal deficit substantially.
- There is a need to increase domestic oil production and refining, adopt alternative energy sources, and gradually reduce fuel subsidies to curb the growing fiscal burden.
This document provides an introduction and overview of a term paper on fundamental and technical analysis of crude oil. It discusses India's dependence on crude oil imports to meet domestic demand. Rising international crude oil prices pose challenges for India's economy by increasing costs. The paper aims to analyze the impact of changes in India's crude oil basket price on economic indicators like inflation and GDP growth. It seeks to understand the relationship between crude oil prices and economic development in India.
Impact of crudeoil price on indian economySarath Karan
This document is a project report submitted for a Bachelor of Commerce degree that analyzes the impact of crude oil prices on the Indian economy. It includes an introduction outlining India's growing energy needs and import dependence. The objectives are to study how global oil price fluctuations affect India, their economic impact, and how common people are affected. The report will analyze secondary data on oil demand, prices and the Indian market. It includes exhibits and tables presenting survey results on how increased fuel costs influence household budgets and expenditures. The conclusions will provide findings and suggestions.
quality analysis of crude oil and drilling fluids SHIKHA THAPA
This document is a summer training report submitted by Shikha Thapa to the Oil and Natural Gas Commission (ONGC) in Dehradun, India. It provides background information on ONGC, including its history, functions, assets and institutes. ONGC was established in 1956 to develop India's oil and gas resources and has since established over 7 billion tons of hydrocarbon reserves. It currently produces around 69% of India's crude oil and 62% of natural gas. The report covers Shikha Thapa's 4-week summer training program at the Keshava Dev Malaviya Institute of Petroleum Exploration, where she studied crude oil analysis and drilling fluids under the supervision of Dr. Rajeev Kumar Mit
This ppt is of subject called Elements of Corporate Finance .
it include the information about the OPEC , reasons , some current information about crude oil and major suppliers of crude oil to india( 2015)
Activities in oil and gas industry,Top 10 oil and gas companies in India, contribution to India's GDP,oil supply and Demand in India, challenges for the oil and gas industry, Investment and FDI.
Crude oil is an unrefined petroleum product composed of hydrocarbon deposits that can be refined to produce fuels like gasoline and diesel. The top crude oil reserve holding countries are Venezuela, Saudi Arabia, Canada, Iran, Iraq, Kuwait, UAE, Russia, Libya, and Nigeria, while India ranks 23rd. Crude oil is transported worldwide via tankers and pipelines and used to produce fuels and petrochemical products. It is a key commodity that influences many economic sectors and the global economy.
The oil and gas industry in India was first established in 1889 with the discovery of oil deposits in Assam. In 1959, the industry was nationalized and run by the government until liberalization began in the 1990s. India is a major consumer of oil and gas and will surpass Japan to become the third largest oil consumer by 2025, though per capita consumption is still lower than global averages. The industry comprises upstream producers like ONGC and Reliance, midstream refiners including both public sector units and private companies, and downstream distributors dominated by public sector units but with growing private sector participation.
Oil prices are determined by global supply and demand factors as well as market sentiment. In India, over 50% of petrol costs are from taxes as oil is a major source of government revenue. Rising oil prices negatively impact India's trade deficit and inflation while benefiting government finances. Major causes of high oil prices in India include supply/demand imbalances, a large vehicle using population, and absence of reforms. Steps to reduce impacts include developing alternate energy sources, energy efficiency, and maintaining economic growth.
This document provides an introduction and overview of a term paper on fundamental and technical analysis of crude oil. It discusses India's dependence on crude oil imports to meet domestic demand. Rising international crude oil prices pose challenges for India's economy by increasing costs. The paper aims to analyze the impact of changes in India's crude oil basket price on economic indicators like inflation and GDP growth. It seeks to understand the relationship between crude oil prices and economic development in India.
Impact of crudeoil price on indian economySarath Karan
This document is a project report submitted for a Bachelor of Commerce degree that analyzes the impact of crude oil prices on the Indian economy. It includes an introduction outlining India's growing energy needs and import dependence. The objectives are to study how global oil price fluctuations affect India, their economic impact, and how common people are affected. The report will analyze secondary data on oil demand, prices and the Indian market. It includes exhibits and tables presenting survey results on how increased fuel costs influence household budgets and expenditures. The conclusions will provide findings and suggestions.
quality analysis of crude oil and drilling fluids SHIKHA THAPA
This document is a summer training report submitted by Shikha Thapa to the Oil and Natural Gas Commission (ONGC) in Dehradun, India. It provides background information on ONGC, including its history, functions, assets and institutes. ONGC was established in 1956 to develop India's oil and gas resources and has since established over 7 billion tons of hydrocarbon reserves. It currently produces around 69% of India's crude oil and 62% of natural gas. The report covers Shikha Thapa's 4-week summer training program at the Keshava Dev Malaviya Institute of Petroleum Exploration, where she studied crude oil analysis and drilling fluids under the supervision of Dr. Rajeev Kumar Mit
This ppt is of subject called Elements of Corporate Finance .
it include the information about the OPEC , reasons , some current information about crude oil and major suppliers of crude oil to india( 2015)
Activities in oil and gas industry,Top 10 oil and gas companies in India, contribution to India's GDP,oil supply and Demand in India, challenges for the oil and gas industry, Investment and FDI.
Crude oil is an unrefined petroleum product composed of hydrocarbon deposits that can be refined to produce fuels like gasoline and diesel. The top crude oil reserve holding countries are Venezuela, Saudi Arabia, Canada, Iran, Iraq, Kuwait, UAE, Russia, Libya, and Nigeria, while India ranks 23rd. Crude oil is transported worldwide via tankers and pipelines and used to produce fuels and petrochemical products. It is a key commodity that influences many economic sectors and the global economy.
The oil and gas industry in India was first established in 1889 with the discovery of oil deposits in Assam. In 1959, the industry was nationalized and run by the government until liberalization began in the 1990s. India is a major consumer of oil and gas and will surpass Japan to become the third largest oil consumer by 2025, though per capita consumption is still lower than global averages. The industry comprises upstream producers like ONGC and Reliance, midstream refiners including both public sector units and private companies, and downstream distributors dominated by public sector units but with growing private sector participation.
Oil prices are determined by global supply and demand factors as well as market sentiment. In India, over 50% of petrol costs are from taxes as oil is a major source of government revenue. Rising oil prices negatively impact India's trade deficit and inflation while benefiting government finances. Major causes of high oil prices in India include supply/demand imbalances, a large vehicle using population, and absence of reforms. Steps to reduce impacts include developing alternate energy sources, energy efficiency, and maintaining economic growth.
The document provides a sectorial analysis of the oil and gas industry in India. It discusses the industry's contribution to the Indian economy through employment, GDP contribution, and FDI inflows. It analyzes the competitive landscape and profiles the top companies in the sector. The summary also examines the government's current policies supporting the industry and outlines future prospects like planned investments to increase refining capacity and expand the national gas pipeline network.
The Indian government defended its policy of not allowing domestic crude oil exports to the Delhi High Court, arguing that India's energy security would be compromised if more expensive imported crude was needed to make up for exported domestic crude. The government also said that allowing crude exports is not economically justified since India imports 84.9% of its crude oil needs currently to meet domestic refining capacity. It further stated that its policy aims to achieve self-sufficiency in crude oil rather than earn profits from natural resources by exporting crude domestically.
This document summarizes a report on the decreament in oil prices. It lists 6 group members who authored the report and outlines the contents which include introductions to oil usage and price variation, causes and effects of price changes on human life, and the impacts of decreasing prices. It also discusses factors like supply and demand that influence price as well as how lower prices positively impact oil consumers but negatively affect oil exporting countries.
Sponsor: Competition Commission of India New Delhi. January 2009
Team Members
Ashok Desai
Laveesh Bhandari
Ramrao Mundhe
Maj. General Bhupindra Yadav
Special Thanks to
Experts at the Competition Commission of India
Payal Malik
This paper is about the Indian petroleum refining industry. But this industry is extremely open; trade flows are large compared to production. And there is considerable overlap between oil production and refining internationally, and to some extent in India. So we begin with a brief discussion of the international petroleum industry and its components – refining being one of them.
Petroleum is extracted from underground reserves; then it is cracked or “refined” into end products for various uses. The petroleum industry thus has two parts: an oil exploration and production industry upstream and a refinery industry downstream. Most oil producers also own refineries. But the reverse is not true; a high proportion of oil is sold to refinery companies that do not produce crude oil.
Sedimentary rocks in which hydrocarbons are trapped often hold gas, sometimes in association with crude oil and sometimes alone. It consists mostly of methane, which is lighter than air and toxic. It therefore requires airtight tanks for storage and similarly leak-proof pipes or trucks for transport, which raise its capital costs. Associated gas was flared in early years of the industry; it is still flared at remote or minor wells where the cost of its collection and transport would be high, or often reinjected into the oilfield to maintain pressure which forces oil up to the surface. But where the quantities are large enough, natural gas is mined and traded. It is mainly used as an industrial, domestic and vehicular fuel.
Motor vehicles run almost exclusively on petrol and high-speed diesel oil, both fuels derived from mineral oil – although they can be modified to run on certain biofuels. Vehicles are so widely dispersed that they require an extensive distribution system for these two refinery products. As motor vehicle use has spread across the world, it has brought along with it petrol pumps, logistics, storage and supply of fuels. There is thus a third part of the petroleum industry downstream from refineries which distributes the products. It is owned by refineries in most countries. But this is not inevitable. Some countries have distribution chains that are independent of producers and refiners; and in countries which do not have refineries, distribution is undertaken by either local or foreign oil companies.
Oil has collected in pools and seeps for thousands of years. The Chinese are recorded as having extracted oil from wells 800 feet deep through bamboo pipes in 347; they used it to evaporate brine and make salt. American Indians used to put it to medicinal uses. Persians, Macedonians and Egyptians used tars to waterproof ships. Babylonians used asphalt in the eighth century to construct the city’s walls, towers and roads. But the easily available oil was not put to any mass use because the crude itself was not a good fuel; it gave out much soot and smoke. A distillation process using a retort was invented by Rhazes (Muhammad ibn Zakariya Razi) in Persia in the 9th century; liquid heated in it vapourized, passed through a curved spout and condensed in another container. The process could be used to make kerosene; but it was more often used to make alcohol and essence of flowers for perfume. It was a batch process, its fuel consumption was high, and it was not equally efficient at distilling kerosene from all crudes.
A more efficient and reliable distillation process came out of a series of inventions after 1846. The last invention was the invention of oil fractionation in 1854 by Benjamin Silliman, a professor of science in Yale. It used a vertical column which separated components more efficiently, and which could be used continuously.
Oil was first produced in Titusville,
The oil and gas industry in India is large and growing, anticipated to be worth $139.8 billion by 2015. It currently accounts for 15% of India's GDP. Natural gas demand is expected to grow significantly by 2025. The top players are public sector companies like ONGC and private companies like Reliance Industries. The industry is an oligopoly with competition occurring through means other than price. Factors like volatile oil prices, operational hazards, and environmental regulations pose risks to the industry. The government is taking steps to promote the industry through initiatives like expanding cooperation with other countries.
Impact of crude oil prices on Pakistan economy 2015UmerMukhtarAhmed
When oil and shale boom hit the economy of oil exporting countries it also help the oil importing countries to save some money. This journal is written to show what happens with the Pakistan economy during toil boom.
The document summarizes the recent decline in global crude oil prices from 2014 to 2015. It discusses several key reasons for the price decline, including increased US production, weaker demand from emerging markets, and Saudi Arabia's decision to maintain production levels despite proposals from OPEC members to cut supply. The summary also notes that lower oil prices benefit importers like India through reduced energy costs and trade deficits, but hurt exporters like Russia, Saudi Arabia, and Iran through lower revenues.
The document provides an analysis of the oil and natural gas sector in India, with a focus on Oil and Natural Gas Corporation Limited (ONGC). Some key points:
- ONGC is India's largest oil and gas exploration and production company, producing around 77% of India's crude oil and 81% of its natural gas.
- The document discusses the growth and performance of India's oil and gas industry. Demand for oil and gas is rising in India as the economy grows rapidly.
- A SWOT analysis of ONGC identifies strengths like state ownership and infrastructure, but also weaknesses such as aging reservoirs and changing government policies.
- Financial analysis shows ONGC has had strong profits and returns in
This document discusses the oil price and its impact. It begins by outlining the importance of oil and its many uses. It then discusses the economics of oil supply and demand and how they are inelastic, leading to large price fluctuations. It outlines some major oil price benchmarks and describes key oil producing and consuming countries. The document then analyzes how volatility in oil prices impacts both global and Indian economies. It concludes by discussing India's vision for increasing energy self-sufficiency and alternative energy sources that may play a larger role in the future.
Oil prices are falling due to increased global supply outpacing demand, as well as increased production from countries like the US, Libya, and OPEC members refusing to cut production. Lower oil prices benefit economies that are net oil importers, like the US, India, and parts of Europe, but hurt exporters like Russia, Iran, and Venezuela. In India, falling prices reduce subsidy costs for the government, but also lower inflation and transportation costs, benefitting consumers.
Crude oil is a naturally occurring fossil fuel that is an important economic resource. It is extracted through oil drilling and refined into consumer products like gasoline and kerosene. Edwin Drake drilled the first successful oil well in the US in 1859, sparking massive growth in the oil industry worldwide. OPEC was formed in 1960 by major oil exporting countries to coordinate pricing of oil on the global market. High oil prices negatively impact economies by increasing inflation, government spending on subsidies, and costs for businesses and consumers. Alternatives to oil include solar, wind, hydroelectric, and nuclear energy sources.
A company review on ONGC(Oil and Natural Gas Corporation Limited). In this presentation, We can find entire information about the ONGC, How it came into existence and board of directors, subsidiaries and Competitors. We can also find the Financial analysis of the company. We can know the SWOT analysis, Awards and recognition and CSR activities of the ONGC company.
Oil prices have fallen significantly since mid-2014 due to oversupply and decreased demand from China. Key factors driving the price decline include increased US shale production, OPEC's decision to maintain supply, and geopolitical instability in oil producing regions. Lower oil prices benefit oil importing countries through reduced fuel costs and inflation, but harm export revenues and economies of oil producing nations. India benefits from lower subsidy spending and a reduced current account deficit. Alternative energy technologies may replace oil in the future.
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.
What the drop in oil prices means for the economy and office marketsJLL
Lower oil prices will negatively impact energy companies through reduced profit margins and capital spending cuts, leading to potential job losses. However, lower gas prices provide an economic stimulus for consumers and other industries through substantial savings. While energy-focused office markets may see weaker demand from energy companies scaling back, the broader economic benefits of low oil prices and diversifying economies will help offset negative impacts on office fundamentals. The long-term impact on office markets depends on the level of mergers and acquisitions in the energy sector and whether prices remain low, increasing vacant space through consolidation.
Oil and gas currently satisfy 55% of the world's energy needs and contributed the majority of energy production in 1971. While oil and gas production and consumption have increased significantly since then, their contribution to the total energy mix has decreased as other sources have grown. India is the fifth largest energy consumer and heavily dependent on imported oil, with domestic demand and production of both oil and gas projected to continue increasing substantially in the coming decades. Uncertainty around economic and environmental factors could impact future supply and demand for oil and gas globally.
Oil prices falling and Their Impact on World and Indian EconomyRishabh Hurkat
The presentations is focused on Reason Behind the Fall in Global Crude Oil Prices.
It also inculcates various Charts and Data which are Up-to-date.
The Basic Reason is to understand the Effect on Global and Indian Economy.
financial analysis of ongc Final project sunilpatel188
The document provides information about Oil and Natural Gas Corporation Limited (ONGC), India's largest oil and gas exploration and production company. It discusses ONGC's history beginning in 1955, assets and operations, vision, mission, subsidiaries, and board of directors. Key points include that ONGC produces over 80% of India's oil and gas, operates assets across several basins and regions in India, and has expanded operations globally through subsidiaries like ONGC Videsh Limited.
The document discusses the history and methods of population control and birth control globally. It covers the origins of the international population control movement in the 1950s led by the US. It then discusses specific approaches taken in India, Africa, China, and low-income countries. In India, breastfeeding is discussed as an effective birth control method. In Africa, having many children is seen as a gift but overpopulation is an issue. China implemented its one-child policy in the late 1970s using fines and forced abortions/sterilization to reduce population growth.
This document provides an acknowledgement and thanks to various individuals and organizations that assisted with a summer internship project. It thanks Cargill India Pvt. Ltd. for providing the opportunity and two managers specifically, Pritish Gupta and Rajat Sharma, for their guidance and support. The author also thanks their faculty guide for helpful suggestions. Thanks are also given to team members for their cooperation and the author's parents for their support.
The document provides a sectorial analysis of the oil and gas industry in India. It discusses the industry's contribution to the Indian economy through employment, GDP contribution, and FDI inflows. It analyzes the competitive landscape and profiles the top companies in the sector. The summary also examines the government's current policies supporting the industry and outlines future prospects like planned investments to increase refining capacity and expand the national gas pipeline network.
The Indian government defended its policy of not allowing domestic crude oil exports to the Delhi High Court, arguing that India's energy security would be compromised if more expensive imported crude was needed to make up for exported domestic crude. The government also said that allowing crude exports is not economically justified since India imports 84.9% of its crude oil needs currently to meet domestic refining capacity. It further stated that its policy aims to achieve self-sufficiency in crude oil rather than earn profits from natural resources by exporting crude domestically.
This document summarizes a report on the decreament in oil prices. It lists 6 group members who authored the report and outlines the contents which include introductions to oil usage and price variation, causes and effects of price changes on human life, and the impacts of decreasing prices. It also discusses factors like supply and demand that influence price as well as how lower prices positively impact oil consumers but negatively affect oil exporting countries.
Sponsor: Competition Commission of India New Delhi. January 2009
Team Members
Ashok Desai
Laveesh Bhandari
Ramrao Mundhe
Maj. General Bhupindra Yadav
Special Thanks to
Experts at the Competition Commission of India
Payal Malik
This paper is about the Indian petroleum refining industry. But this industry is extremely open; trade flows are large compared to production. And there is considerable overlap between oil production and refining internationally, and to some extent in India. So we begin with a brief discussion of the international petroleum industry and its components – refining being one of them.
Petroleum is extracted from underground reserves; then it is cracked or “refined” into end products for various uses. The petroleum industry thus has two parts: an oil exploration and production industry upstream and a refinery industry downstream. Most oil producers also own refineries. But the reverse is not true; a high proportion of oil is sold to refinery companies that do not produce crude oil.
Sedimentary rocks in which hydrocarbons are trapped often hold gas, sometimes in association with crude oil and sometimes alone. It consists mostly of methane, which is lighter than air and toxic. It therefore requires airtight tanks for storage and similarly leak-proof pipes or trucks for transport, which raise its capital costs. Associated gas was flared in early years of the industry; it is still flared at remote or minor wells where the cost of its collection and transport would be high, or often reinjected into the oilfield to maintain pressure which forces oil up to the surface. But where the quantities are large enough, natural gas is mined and traded. It is mainly used as an industrial, domestic and vehicular fuel.
Motor vehicles run almost exclusively on petrol and high-speed diesel oil, both fuels derived from mineral oil – although they can be modified to run on certain biofuels. Vehicles are so widely dispersed that they require an extensive distribution system for these two refinery products. As motor vehicle use has spread across the world, it has brought along with it petrol pumps, logistics, storage and supply of fuels. There is thus a third part of the petroleum industry downstream from refineries which distributes the products. It is owned by refineries in most countries. But this is not inevitable. Some countries have distribution chains that are independent of producers and refiners; and in countries which do not have refineries, distribution is undertaken by either local or foreign oil companies.
Oil has collected in pools and seeps for thousands of years. The Chinese are recorded as having extracted oil from wells 800 feet deep through bamboo pipes in 347; they used it to evaporate brine and make salt. American Indians used to put it to medicinal uses. Persians, Macedonians and Egyptians used tars to waterproof ships. Babylonians used asphalt in the eighth century to construct the city’s walls, towers and roads. But the easily available oil was not put to any mass use because the crude itself was not a good fuel; it gave out much soot and smoke. A distillation process using a retort was invented by Rhazes (Muhammad ibn Zakariya Razi) in Persia in the 9th century; liquid heated in it vapourized, passed through a curved spout and condensed in another container. The process could be used to make kerosene; but it was more often used to make alcohol and essence of flowers for perfume. It was a batch process, its fuel consumption was high, and it was not equally efficient at distilling kerosene from all crudes.
A more efficient and reliable distillation process came out of a series of inventions after 1846. The last invention was the invention of oil fractionation in 1854 by Benjamin Silliman, a professor of science in Yale. It used a vertical column which separated components more efficiently, and which could be used continuously.
Oil was first produced in Titusville,
The oil and gas industry in India is large and growing, anticipated to be worth $139.8 billion by 2015. It currently accounts for 15% of India's GDP. Natural gas demand is expected to grow significantly by 2025. The top players are public sector companies like ONGC and private companies like Reliance Industries. The industry is an oligopoly with competition occurring through means other than price. Factors like volatile oil prices, operational hazards, and environmental regulations pose risks to the industry. The government is taking steps to promote the industry through initiatives like expanding cooperation with other countries.
Impact of crude oil prices on Pakistan economy 2015UmerMukhtarAhmed
When oil and shale boom hit the economy of oil exporting countries it also help the oil importing countries to save some money. This journal is written to show what happens with the Pakistan economy during toil boom.
The document summarizes the recent decline in global crude oil prices from 2014 to 2015. It discusses several key reasons for the price decline, including increased US production, weaker demand from emerging markets, and Saudi Arabia's decision to maintain production levels despite proposals from OPEC members to cut supply. The summary also notes that lower oil prices benefit importers like India through reduced energy costs and trade deficits, but hurt exporters like Russia, Saudi Arabia, and Iran through lower revenues.
The document provides an analysis of the oil and natural gas sector in India, with a focus on Oil and Natural Gas Corporation Limited (ONGC). Some key points:
- ONGC is India's largest oil and gas exploration and production company, producing around 77% of India's crude oil and 81% of its natural gas.
- The document discusses the growth and performance of India's oil and gas industry. Demand for oil and gas is rising in India as the economy grows rapidly.
- A SWOT analysis of ONGC identifies strengths like state ownership and infrastructure, but also weaknesses such as aging reservoirs and changing government policies.
- Financial analysis shows ONGC has had strong profits and returns in
This document discusses the oil price and its impact. It begins by outlining the importance of oil and its many uses. It then discusses the economics of oil supply and demand and how they are inelastic, leading to large price fluctuations. It outlines some major oil price benchmarks and describes key oil producing and consuming countries. The document then analyzes how volatility in oil prices impacts both global and Indian economies. It concludes by discussing India's vision for increasing energy self-sufficiency and alternative energy sources that may play a larger role in the future.
Oil prices are falling due to increased global supply outpacing demand, as well as increased production from countries like the US, Libya, and OPEC members refusing to cut production. Lower oil prices benefit economies that are net oil importers, like the US, India, and parts of Europe, but hurt exporters like Russia, Iran, and Venezuela. In India, falling prices reduce subsidy costs for the government, but also lower inflation and transportation costs, benefitting consumers.
Crude oil is a naturally occurring fossil fuel that is an important economic resource. It is extracted through oil drilling and refined into consumer products like gasoline and kerosene. Edwin Drake drilled the first successful oil well in the US in 1859, sparking massive growth in the oil industry worldwide. OPEC was formed in 1960 by major oil exporting countries to coordinate pricing of oil on the global market. High oil prices negatively impact economies by increasing inflation, government spending on subsidies, and costs for businesses and consumers. Alternatives to oil include solar, wind, hydroelectric, and nuclear energy sources.
A company review on ONGC(Oil and Natural Gas Corporation Limited). In this presentation, We can find entire information about the ONGC, How it came into existence and board of directors, subsidiaries and Competitors. We can also find the Financial analysis of the company. We can know the SWOT analysis, Awards and recognition and CSR activities of the ONGC company.
Oil prices have fallen significantly since mid-2014 due to oversupply and decreased demand from China. Key factors driving the price decline include increased US shale production, OPEC's decision to maintain supply, and geopolitical instability in oil producing regions. Lower oil prices benefit oil importing countries through reduced fuel costs and inflation, but harm export revenues and economies of oil producing nations. India benefits from lower subsidy spending and a reduced current account deficit. Alternative energy technologies may replace oil in the future.
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.
What the drop in oil prices means for the economy and office marketsJLL
Lower oil prices will negatively impact energy companies through reduced profit margins and capital spending cuts, leading to potential job losses. However, lower gas prices provide an economic stimulus for consumers and other industries through substantial savings. While energy-focused office markets may see weaker demand from energy companies scaling back, the broader economic benefits of low oil prices and diversifying economies will help offset negative impacts on office fundamentals. The long-term impact on office markets depends on the level of mergers and acquisitions in the energy sector and whether prices remain low, increasing vacant space through consolidation.
Oil and gas currently satisfy 55% of the world's energy needs and contributed the majority of energy production in 1971. While oil and gas production and consumption have increased significantly since then, their contribution to the total energy mix has decreased as other sources have grown. India is the fifth largest energy consumer and heavily dependent on imported oil, with domestic demand and production of both oil and gas projected to continue increasing substantially in the coming decades. Uncertainty around economic and environmental factors could impact future supply and demand for oil and gas globally.
Oil prices falling and Their Impact on World and Indian EconomyRishabh Hurkat
The presentations is focused on Reason Behind the Fall in Global Crude Oil Prices.
It also inculcates various Charts and Data which are Up-to-date.
The Basic Reason is to understand the Effect on Global and Indian Economy.
financial analysis of ongc Final project sunilpatel188
The document provides information about Oil and Natural Gas Corporation Limited (ONGC), India's largest oil and gas exploration and production company. It discusses ONGC's history beginning in 1955, assets and operations, vision, mission, subsidiaries, and board of directors. Key points include that ONGC produces over 80% of India's oil and gas, operates assets across several basins and regions in India, and has expanded operations globally through subsidiaries like ONGC Videsh Limited.
The document discusses the history and methods of population control and birth control globally. It covers the origins of the international population control movement in the 1950s led by the US. It then discusses specific approaches taken in India, Africa, China, and low-income countries. In India, breastfeeding is discussed as an effective birth control method. In Africa, having many children is seen as a gift but overpopulation is an issue. China implemented its one-child policy in the late 1970s using fines and forced abortions/sterilization to reduce population growth.
This document provides an acknowledgement and thanks to various individuals and organizations that assisted with a summer internship project. It thanks Cargill India Pvt. Ltd. for providing the opportunity and two managers specifically, Pritish Gupta and Rajat Sharma, for their guidance and support. The author also thanks their faculty guide for helpful suggestions. Thanks are also given to team members for their cooperation and the author's parents for their support.
This document discusses various types of taxes in India including direct taxes, indirect taxes, customs duty, and excise duty. It provides details on the collection and growth of indirect taxes like customs, central excise, and service tax between 2011-12 and 2012-13. Similarly, it mentions the collection and growth of direct taxes like corporate tax and income tax during the same period. Charts are included to illustrate the percentage growth of these taxes over the years. The document also discusses the classification of taxes under the Indian constitution and the laws governing customs duty and excise duty in India. Key aspects like charging of duty, scope, and basic concepts are explained for customs duty and excise duty.
Case Study for Plant Layout :: A modern analysisSarang Bhutada
The document summarizes an approach to developing an optimal layout for a manufacturing plant. It considers factors like the load and distance between operation centers, uses a stratified random sample to evaluate the requirements, and applies Schneider's method and a load distance matrix to transform the existing layout. The new layout improved efficiency and reduced material handling costs. It also discusses alternative layout approaches, including using a hybrid process-assembly line layout to reduce production time.
This paper experiments with different heuristic approaches to solve a real facility layout problem at a furniture manufacturing company. Five layout modeling techniques are applied to the problem: graph theory, CRAFT, optimum sequence, BLOCPLAN, and genetic algorithm. The resulting layouts are evaluated based on total area, flow times distance, and adjacency percentage. The best layout is selected using the analytic hierarchy process and is found to improve upon the existing layout, demonstrating the effectiveness of formal modeling approaches for real industrial problems.
Oil is the main energy source but prices are rising due to various factors like growing demand, limited supply, and political instability. Higher oil prices lead to inflation, hurt businesses and consumers, and negatively impact the economy. Solutions include developing renewable energy, more efficient use of oil, public transportation, and awareness programs. Government policies aim to control prices and encourage alternatives.
The document discusses the relationship between crude oil prices, the rupee-dollar exchange rate, and geopolitical events. It notes that India imports over 3 million barrels of crude oil per day, accounting for over 50% of its exports. When crude oil futures prices increase, it drives up imports and the demand for dollars, putting pressure on the rupee to depreciate against the dollar. Geopolitical events that disrupt global oil supply can also impact crude oil prices by creating uncertainty about future availability, leading to higher price volatility in the short term due to inelastic supply and demand.
The document discusses India's oil and gas subsidies and proposes reforms. It notes that subsidies disproportionately benefit the wealthy and are inefficient. It analyzes subsidies for LPG, kerosene, and diesel. While subsidies help some poor households, they are regressive overall and increase oil imports. The document proposes a reform strategy involving gradual phase-out of subsidies, monitoring impacts, and introducing policies like conditional cash transfers to support poor households during the transition. A communication campaign would explain the need for reform to minimize backlash.
Petroleum is a naturally occurring liquid found in rock formations that was formed from ancient plankton over hundreds of millions of years. It has been used by humans for over 5,000 years as a fuel and for warfare. A petroleum industry emerged in North America in the 19th century and has since become the world's largest industry. The petroleum industry is divided into upstream (exploration and production), midstream (processing, storage, and transportation), and downstream (refining, distribution, and marketing) sectors. Major oil companies in India include Indian Oil Corporation, ONGC, Bharat Petroleum, and Reliance Petroleum Limited.
The document discusses the impact of global crude oil prices on the Indian economy. It outlines how oil prices have fluctuated over time due to major events like the establishment of OPEC in 1960 and oil embargoes in the 1970s. It also describes how the crude oil supply market operates as an oligopoly dominated by OPEC. Rising global demand and inelastic supply/demand have led prices to increase. High oil prices raise inflation and hurt India's GDP due to its oil import dependence and fuel subsidy costs.
Crude oil is a naturally occurring fossil fuel that is refined into many consumer products. It is a black, thick liquid called "black gold" due to its economic importance as a non-renewable resource where demand exceeds supply, leading to price increases. An international organization called OPEC controls global oil prices. Rising prices negatively impact economies by increasing inflation, slowing growth, and reducing employment. Alternatives to petroleum such as natural gas, biodiesel, hybrids, and renewable energy can help address these issues.
The document discusses why the full benefits of reduced global crude oil prices have not been passed on to consumers in India. It notes that while crude oil prices have fallen significantly, petrol and diesel prices have only fallen by 10-15 rupees. This is because the government has used the opportunity to increase excise duties on petrol and diesel four times, capturing the savings for itself. The increased excise duties have allowed the government to generate additional revenue to reduce the fiscal deficit and improve India's financial situation. Exchange rate fluctuations have also contributed to Indian oil companies and consumers not gaining the full benefits of lower international crude prices.
Why the benefit of reduction in Crude oil prices has not been transferred to public? What are dynamics behind not reducing the Petrol and Diesel price significantly?
The document provides an overview of crude oil markets including key facts, figures and country profiles. It discusses the top oil producing and consuming countries. Saudi Arabia has the largest proven reserves while the US is the top consumer. China and India are major growing consumers increasing imports to meet demand. Geopolitical and economic factors influence prices along with inventories and production from OPEC.
The document provides an overview of the petroleum industry, including its structure and major players. It discusses:
- The petroleum industry involves exploration, extraction, refining, transporting and marketing of oil and gas products globally. Its largest products are fuel oil and gasoline.
- The industry is divided into upstream (exploration and production), midstream (transportation), and downstream (refining and marketing) sectors.
- The largest oil companies globally based on oil production are Saudi Aramco, Gazprom, and the National Iranian Oil Company.
- OPEC coordinates petroleum policies of its 12 member countries, who collectively produce around 40% of global oil and 15% of natural gas
This document provides an overview of the global oil and gas industry and markets. It discusses the history and evolution of the oil industry, current global energy usage and demand trends, key oil and gas producing regions and companies, oil and gas markets and pricing, the process for developing new oil and gas fields, and India's energy landscape and challenges. It aims to serve as an introductory guide to understanding the international oil and gas sector.
India is the third largest importer of crude oil in the world. In 2016, the Indian government replaced its existing policy for state-run oil companies to import crude oil. Previously, oil companies had to get government approvals for long-term contracts, but the new policy allows them to purchase crude oil directly from the spot market without a tendering process. This provides price advantages for both the government and consumers. India imports crude oil from many countries including Iraq, Saudi Arabia, Iran, Venezuela, and the United States. The majority of India's oil needs are met through imports as domestic production satisfies less than 25% of demand.
June 2014 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
INDUSTRY ANALYSIS : Oil & Gas Industry
COMPANY ANALYSIS : HPCL
Concept of the Month
Quiz
Did You Know?
India imports 79% of its crude oil demand and oil subsidies place a large burden on the government and oil companies. While subsidies are intended to help the poor, most benefits go to wealthier households. Recommendations include reducing subsidies gradually, targeting subsidies to the poor, increasing fuel efficiency, and establishing an independent pricing body to reduce political influence. In the long run, fully liberalizing diesel and LPG pricing could significantly reduce under-recovery costs.
This document provides an overview of oil economics. It discusses the importance of oil as the primary energy source and backbone of many economies. It outlines the upstream, midstream, and downstream sectors of the oil industry. It also examines major oil deposits worldwide, economics of the global oil market, and India's oil economics. It analyzes factors like taxes, prices, demand and supply, and market sentiment that influence oil prices. Finally, it predicts that political unrest and changing positions may lead to another global oil crisis in 1974.
- The document discusses the impact of petroleum prices on Pakistan's economy. It acknowledges contributions from Allah and the teacher, Prof. Farooq Qaisar.
- Petroleum plays a vital role for many Pakistani industries. The group's project studies how fluctuations in petroleum and crude oil prices affect Pakistan's economy and GDP.
- Through literature reviews, surveys, and analysis, the group found that changes in international oil prices did not significantly impact Pakistan's economy, unlike expectations.
- The document provides members' names, an importance statement on petroleum, and definitions of key terms like GDP. It also lists historical oil prices in Pakistan and conclusions on impacts of lower oil prices.
OIL's vision is to be a knowledge-based, competitive exploration and production company with global presence and selective presence across the oil and gas value chain in India, maximizing shareholder value while respecting stakeholders and the environment. The document discusses OIL's potential for mergers and acquisitions to expand beyond territorial boundaries into the upstream, downstream, natural gas, and chemicals value chains. It analyzes the different risk and return profiles of businesses in each segment of the oil and gas industry value chain.
Investment Opportunity in Edible Oil Manufacturing Unit. Edible Oil Refinery ...Ajjay Kumar Gupta
The document discusses setting up an edible oil manufacturing plant that produces sunflower, groundnut, and rice bran oils. It provides an overview of the edible oil industry in India, including production and consumption trends. It also describes the key characteristics and uses of sunflower oil, groundnut oil, and rice bran oil. The document then outlines the project details, including machinery requirements, manufacturing process, financials, and viability.
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. 1
1. Theme – Oil Pricing Policy in India
Abstract
We observe that India is richly endowed with crude oil reserves; however these are not being fully
utilized. The prices of petrol, diesel, LPG and CNG are often revised. This causes a lot of uneasiness in
the economy. The price rise is not taken in well by most sections of society specially the common man.
Why do prices of these products rise and how are they influenced by the international prices, these
basic questions can be understood in a simple way, although these are very complicated issues. Our
economy at present seems to be compelled to import crude oil from the OPEC to meet over 70% of its
need. With fluctuating price of foreign exchange in favour of the US dollar, the economy pays a heavy
price for its import. It is imperative that ways to be self- reliant in petroleum usage are developed;
alternative means of energy need to be used in everyday life. Recently policy decisions have reduced
the subsidies provided by the government on petroleum products as these add to its budgetary burden.
Fiscal deficit needs to be curbed. One way to reduce the burden of subsidies is to de- regulate the price
of petrol and diesel. The need of the hour is to develop refining facilities within the economy,
popularize the non- conventional sources of energy like solar, wind and natural gas. Also a lot can be
done at home, in place of work, on the roads to reduce energy consumption. It is in the interest of all to
consciously adopt ways of conserving energy.
Source: www.telegraph.co.uk
Fig. 1
Crude oil is referred to as petroleum in its unprocessed form. It is a dark sticky liquid as you can see
in the picture above. It is scientifically called hydro carbon. As you must have read in your previous
classes’ crude oil is formed from plants and animals that were buried deep millions of years ago.
The remains got converted into oil and gas due to heat and pressure.
3. 2
Source: Motorcitytimes.com
Fig. 2
After crude oil is extracted it is taken to the refinery by pipelines, ship or barges. At the refinery
different components of the crude oil are separated into usable petroleum products like LPG, Jet
fuel, diesel and other products. The crude oil is measured in barrels abbreviated as bbls. This
unique measure came up as oil was earlier traded internationally in wooden barrels. 1 barrel = 159
litres approximately and one metric ton = little over 7 barrels.
There are many varieties of crude oil like Brent crude oil, Heavy crude oil, Pennsylvania grade,
Sweet crude, Synthetic crude, etc. These varieties derive their name from nature of the oil. For
example if the sulphur content is less it is called Sweet Crude oil or if it flows freely it is called light
crude oil.
What are "heavy" crude and "light" crude?
Light crude is defined as having a high specific gravity. This classification of oil is easier to pump,
transport and refine into high value products like petrol, diesel and jet fuel. Because of this, it tends
to be more expensive.
Heavy Crude usually contains high concentrations of sulphur and several metals, particularly nickel
and high amount of wax. These are the properties that make them difficult to pump out of the
ground or through a pipeline and interfere with refining. These properties also present serious
environmental challenges.
Heavy oil can be broken into the smaller petrol molecules, through the use of a "catalytic cracker",
but this process uses energy and the resulting petrol is thus more expensive. That cost is offset by
the cheaper cost per barrel of the heavy crude.
What are "sweet" and "sour" Crude?
Sweet Crude has small amounts of sulphur (mainly in the form of hydrogen sulphide H2S) (0.5% or
less) and carbon dioxide, and is used primarily in the production of petrol. Sulphur does damage to
4. 3
the equipment when refining and does damage to the environment (and your car's engine) if not
removed. If the percentage exceeds 0.5% it is classified as sour. Because of the costs involved in
removing the sulphur, sour oil tends to be cheaper than sweet oil.
What kind of crude do Indian refineries process?
Indian refineries process both a mix of sweet and sour. Similarly in India oil reserves are found
below the land or sea bed like the Bombay high off shore station or on shore reserves in Andhra
Pradesh, Gujarat, etc. The map given below clearly depicts the crude oil pipelines spread across the
country.
Source: www.maps of india.com
Fig. 3
According to the oil and gas journal, India had 5.7 billion barrels of crude oil reserves in the
beginning of 2014, which is 2nd largest in Asia Pacific. It has 136 oil fields. Most of these reserves are
in the western part of the country like Rajasthan, Gujarat and Maharashtra as shown in Fig. 3. A lot
of crude oil is extracted in our economy as the time series graph indicates, yet it is not enough to
5. 4
fulfil the domestic needs. The production of crude oil hasn’t increased as much between 2003 to
2013, but consumption has nearly doubled and so Government has to import of crude oil. Though
indigenous crude oil from Assam and Mumbai High are sweet, they accounts for only 17 per cent of
the total processed oil. India has to import the rest, largely from the Middle East and Africa where
crude oils are cheaper and involve smaller tanker voyage. Indian imports comprise of sour crudes
from the Middle East and sweet crude from Africa.
Fig. 4
The time series graph in Fig. 4 shows the gap between production and consumption of crude oil in India.
The reasons for rising demand of petroleum products are many like the Indian economy is in a
stage of development where energy requirement is at a phenomenal pace. Since the beginning of
New Economic Policy 1991, India’s population has increasingly moved to cities, households have
shifted away from traditional biomass to other energy consumption, power and transport sectors are
fast growing and require increasing consumption. Near about 1.4 million barrels of diesel are used
per day in India especially by farmers, trucks and industry. India is ranked 4th in the world after USA,
China and Russia. Since the demand can’t be met internally therefore India imports over 75% of its
crude oil needs from the Middle East, Iran, Nigeria and others. Look at the pie chart given below.
Fig. 5
6. 5
The pie chart in Fig. 5 indicates the countries from where India imports crude oil. It is clear the
majority of India’s imports are from the OPEC. OPEC is Organisation of Petroleum Exporting
Countries. The organisation came up in 1960 with five founding member countries namely, Iran,
Iraq, Kuwait, Saudi Arabia and Venezuela. It has more than 80% of the proven crude oil reserves of
the world. Since world over consumption of oil and its products have been increasing, so have the
prices per barrel risen. The time series graph shown below indicated this.
Year-wise Average of International Crude Oil Prices per barrel
Fig. 6
The current price of crude oil is over $120 per barrel and is expected to soar higher. If as a producer
you were importing a raw material and its cost of importing increases then, what would you do to
recover rising cost? Would you not increase the price of the final product you were selling in
the market?
India primarily imports crude oil at rising prices and with the weakening of the rupee lands up
paying enormous amounts for crude oil imports. Depreciation of the rupee makes our imports
expensive as we have to pay more for every $ of goods bought. For example foreign exchange rate
was 52 rupees = 1$ and then rupee depreciates to 60 rupees = 1 $ and if you had to pay 100 $ for
importing then earlier you paid (100 x 52) rupees 5200 and now you pay (100x 60) rupees 6000,
for the same volume of goods. This burden of rising import prices has to be borne by the
Government Being a welfare state it can’t pass on the burden of rising prices to the common man.
This is where the Government plays a vital role. It offers subsidies to the Oil and Marketing
Companies (OMC’s) like the Oil and Natural Gas Commission (ONGC), Indian Oil Corporation (IOC),
etc.
What are subsidies? Subsidy is a monetary assistance or tax benefit given by the Government to
individuals or institutions to encourage production by reducing cost or encourage consumption.
Government provides a variety of subsidies as can be seen in the pie chart given below. While a
subsidy on fertilizers is meant to encourage the use of fertilizers by farmers, subsidy on diesel is
expected to reduce the cost of transportation for the producers and consumers.
7. 6
Fig. 7
It is expected that the Government will provide subsidised food articles for poor population,
sponsor employment generation schemes and like. As can be seen the maximum subsidy
expenditure is provided on petroleum by the Government. This expenditure on subsidies adds to its
total budget expenditure and ultimately increases the fiscal deficit of the Government Fiscal deficit
is the excess expenditure of the Government which has to be funded through borrowings.
Borrowings add to the future liability of the country and should be kept to a minimum level. Let us
review the bar chart given in Fig. 8. What does it indicate?
Fig. 8
It indicates that not only is the subsidy bill of the Government risen since 2005-06, the proportion
of subsidy given to petroleum has sharply risen. The Government has doled out rupees 1,50,500
crores since 2009-10 to 2011-12 as cash compensation to the oil marketing companies (OMC’s).
8. 7
This compensation is given as the OMC’s sell the petrol, diesel and other products at a highly
subsidised rate. For example in the 1st quarter of 2012 -13 the price of crude oil per barrel was $
109.82 and the companies gave a discount of $56 per barrel and therefore they underwent losses to
the value of $ 53.82 per barrel. Such losses incurred by selling products at less than market price
are called under recoveries (difference between market price and administered price = under
recovery). The Government seems to be trapped in the maze of rising subsidies, under recoveries
and rising international petroleum prices. To make things better economic advisors (the Kirit
Parikh committee June 2010) recommended deregulation of petrol and diesel prices to liberalise
the energy sector in India. Deregulation is defined as the partial removal of Government
control, withdrawal of state interference, encouraging free market operations, simplification
of Government rules and regulations. The merits of this strategy are-
Reduction of the Government burden on subsidies. Cost of subsidy on oil for the year 2012-
2013 is estimated to be Rs 43,580 crores. This extra expenditure can be diverted towards
health and education sector instead.
Help the OMC’s to overcome their under recoveries.
The private companies like ESSAR, Reliance etc. will now get a level ground to compete with the
public sector OMC’s as the administered prices are no longer protecting the OMC’s.
In the long run foreign investment can also feel welcomed to join the oil and petroleum sale and
refining sector.
In the long run the country’s need to import will decrease and so would the import bill.
Aligning the petrol prices to the international market forces.
Is there any relation between the oil prices in India and the world?
Yes petrol price is calculated on the basis of worldwide supply and demand factors. Foreign
suppliers sell crude oil to Oil Marketing Companies (OMCs) in India at benchmark prices. Delivery
price at the refinery and Brent crude’s daily price are considered to calculate actual cost of petrol in
India.
One barrel of crude oil contains about 159 litres of oil priced in US dollars. To calculate price per
litre, the total amount paid in US dollars are converted to Indian rupee and then divided by 159
litres. For example if each barrel of oil cost $110 and 200 barrels have been ordered for, also the
exchange rate is Rs 60 = 1 $. Then the cost per litre will be calculated as follows.
1 bbl x 110 $ per = 110 $.
Rs 60 = 1 $ or 110 $ x 60 = Rs 6600
Cost per litre = 6600 / 159 = Rs 41.509 per lt
After buying, crude oil is transported to refineries in India. India at present has about 20 refineries.
Crude oil is then separated into various products like petrol, diesel, coal tar, etc in distillation
9. 8
towers of these refineries. Cost of distillation and refining is added to the price of petrol. Also
custom levy and charges from ports to the refinery is added.
Separated petrol is now ready to be stored in the storage tanks of the oil companies. Oil companies
now pay to the refineries and to this is added the cost of transporting petrol from refinery to OMC’s
tanks. So the actual price of petrol that a consumer pays includes all the above mentioned cost plus
commission of a dealer, VAT, excise duty, total duties and taxes.
Thus petrol price is the cost price that includes procuring, refining and marketing plus taxes that
include central and state taxes. Suppose if the petrol price per litre in Chennai is Rs 51.90 Rs per
litre, here is the break-up of cost calculated by the government:
Basic Price = Rs. 21.93 per litre
Excise duty = Rs. 14.35
Education tax = Rs. 0.43
Dealer commission = Rs. 1.05
VAT = Rs. 5.5
Crude Oil Custom duty = Rs. 1.1
Petrol Custom = Rs. 1.54
Transportation Charge = Rs. 6.00
Total price = Rs. 51.90
So for a Rs 22 litre petrol at pumps, consumers in India pay Rs 29.90 and tax extra. While policy
makers view so much merit in deregulating petrol prices the common man can’t read between lines
and only cribs about the rising prices of petrol, diesel and other cooking fuels.
Fig. 9 (a) Fig. 9 (b)
10. 9
Look at the cartoons in Fig. 9 (a) and Fig. 9 (b) what do you understand from the cartoons? Are the
two cartoons related? Yes these cartoons are expressing the sentiments of the common man on the
rising petrol, diesel and CNG prices. It is becoming difficult for the commoner to understand why
are these prices rising and who is going to benefit from such an increase?
The rise in petrol price in turn has a rippling effect. As all the commodities are transported across
India on vehicles that run on petrol or diesel, so increase in petrol price results in price rise of these
commodities as well. The greatest sufferer of all this is a common man. He is already bearing the
pressure of inflation and any increase in petrol/ diesel prices will further reduce his disposable
income. With the increase in petrol price food item will get costlier; it will result in less of savings
and more of expenditure. This in turn will affect the real estate, banking and other sectors of the
economy. Eventually, more and more people will be pushed towards poverty line.
It is interesting to know that In USA, at present the fuel price is 3.74$ per gallon, after conversion it
becomes Rs 53.80 per litre. They have fixed per gallon taxes. In fact, in US taxes and charges only
account for 12-15 percent. In Pakistan fuel prices are 16 percent lesser than ours and in Sri Lanka,
they are 15 percent lesser.
While consumers feel frustrated about the heavy taxation on petrol prices, oil companies in India
have to struggle to make profits. Fuel pricing in India is an extremely complicated process between
the various entities involved. Locally decreasing fuel tax can decrease fuel prices. The VAT or value
added tax on petrol or diesel differs from one state to another and is the primary reason for the
difference in petrol costs across the country. The revenue generated through VAT on petrol is
meant to be used for development within the states. It varies between 15% and 33% depending on
the states that have complete control over it. Should they choose to do so, states can reduce or
increase the VAT amount. Goa for example, recently reduced the VAT on petrol thereby making it
cheaper by Rs 11.
We need a balance where one can enjoy affordable fuel prices. Oil companies are getting reasonable
returns whereas our government gets the required revenue.
The entire exercise proves that petroleum pricing is a complex challenge for the Government It is
trying to balance between the interests of the consumers, producers and create a pool for renewing
poverty alleviation programmes. Following are some methods and strategies which contribute
towards solving the problem. Some of these even promote sustainable development. Can you think
of more such solutions?
The refining capacity in the country needs to be increased so that we can use our own
indigenous reserves and reduce dependence on imports.
Modern technology for refining needs to be used like, installation of waste heat recovery system
for example reinjecting gas to underground reservoir. This way the wastage of resources is
minimized.
Encourage the development of equipment for household practices like fans, LED lamps,
refrigerators, etc. that are fuel efficient. Similarly developing fuel efficient machinery for
11. 10
industry and agriculture, like fuel efficient pump sets. Making it mandatory for these appliances
to carry energy labelling as per international standards.
Turning towards renewable sources of energy like solar panels, biogas, wind energy etc. using
these in everyday life situations like running the traffic signals, using solar geysers, smoke less
chulah in rural areas and many more.
Conducting energy audits in households, offices and other organizations to find out the usage
and wastage of energy. Such audits can also keep a check on the use of energy efficient
appliances (with 3 stars) and renewable energy equipments.
Replacing lubricants of lower efficiency with that of higher efficiency, like using unleaded
petrol, low sulphur content in diesel, reducing benzene content in gasoline, using CNG for buses,
auto and PNG instead of LPG for cooking purposes. These will reduce the environmental
pollution.
Change always begins from “me” we all can contribute by making a conscious effort to switch
off lights and fans when not required, use public transport instead of private vehicle, do car
pool, write on both sides of paper, reuse our pens and practice the 3 R’s of REDUCE, REUSE AND
RECYCLE. AS ENERGY SAVED IS ENERGY GENERATED. This is essential for leading a
comfortable life today and tomorrow.
Bibliography
1. www.eia.gov
2. www.petroleum.nic.in
3. www.investopedia.com
4. Kirit Parikh report on deregulation
5. Oil and gas journal
6. Reports by the ministry of oil and natural gas
7. Two cheers for oil reforms – Business today, Business news
Sample Questions
1. Justify why is it necessary to synchronize traffic lights or use public transport instead of
private transport and develop solar panels for household consumption? 5
Answer: This is necessary to save on energy. If all main traffic lights are synchronized then
the fuel wasted by vehicles waiting on the traffic lights can be reduced. Similarly if we
consciously use public transport over private vehicles like scooter, motor cycles and cars then
it saves fuel. If our homes can use solar panels for lighting up, heating, washing and cooling
we would save a lot of fossil fuels used to generate electricity.
(To be assessed as a whole, 5 marks)
12. 11
2. Study the cartoon given below and analyse the implications of it. 5
Answer: The cartoon above shows how the developing countries are being bothered by the
rising oil prices in the world. They are unable to cope with these rising prices and feel
helpless. The rising expenditures lead to problems of deficit financing and inflation in these
developing countries. It is true to conclude that if developing countries don’t find a solution
for themselves then they will be engulfed in this problem.
(To be assessed as a whole, 5 marks)
13. 12
2. Theme – A Critical Analysis of Farmers' Conditions in Punjab
Abstract
Agriculture sector has been recognized as engine of economic growth. Punjab economy is predominant
in agriculture and has been a ‘forerunner’ in green revolution and earned crown of agriculturally
advanced state. But, the benefits of green revolution have largely been reaped by the large farmers,
leaving behind the small and marginal farmers in the clutches of poverty. The farmers in Punjab are
facing problems such as crop failure, continued loss in farming, poor marketing system, pressure of
credit agencies, high input costs and small land holdings etc. Agriculture is no more a profitable
business and farmers are under a huge debt. Many farmers have committed suicides during the past
two decades. This case study attempts to study the reasons behinds this critical situation of farmers of
Punjab.
It is in the agricultural sector that the battle for long-term economic development will be won or lost.
(Prof. Gunnar Myrdal, Nobel Laureate)
Punjab is popularly known as ‘grain bowl’ of India. Punjab has been an agrarian economy and self-
sufficient in food production, thereby generally crowned as ‘bread basket’ of Indians. Punjab
occupies only 1.57% geographical area of India and it contributes more than 50% grain in the
central grain pool. More than 83% of land in Punjab is under agriculture as compared to 40.38% of
national average. During green revolution, modern agricultural tools were used and Punjab became
the role model for the other States in India. The new technologies of green revolution have
provided economic gains in the form of increase in production and productivity.
But today, Punjab is suffering a lot from the ecological point of view. Due to the new agricultural
pattern, the demand for water, chemical fertilizers, insecticides and pesticides is increasing very
sharply in the State, which is giving birth to many problems like water depletion and water logging,
soil degradation and health problems. The productivity of agricultural land is declining and farmers
are under the burden of huge debt.
There is a drastic decline in income of farmers due to increasing input costs and low productivity.
According to a study conducted by CRRID (Centre for Research for Rural and Industrial
Development), annual income of 93 percent farmers have shown substantial decline, while only 3
percent has recorded profitable earning and 4 percent have recorded static earning (Indian
Express, Chandigarh, October 20, 2003).
Due to decline in income, the farmers are taking loan to meet their expenses. According to Rawat
(2003), about 78 percent of farmers of Punjab have availed credit from non-institutional sources
like money lenders, commission agents (aartiyas) and agro-input dealers. They are charging high
14. 13
rate of interest as the farmers pay a minimum of 2 percent per month compounded rate of interest.
It is an interesting fact that commercial banks take about two weeks time to process a loan and
corporative banks take about seven days. But, money lenders and commission agents take only half
a day to process a loan.
At an estimate, the farmers of Punjab are under debt of a monstrous amount of Rs. 10,000 crores.
Further, the farmers who are having less than one acre land, are also burdened under the debt from
Rs. one lakh to 11 lakhs (Sharma, 2003).
Problems being faced by farmers of Punjab
The major problems being faced by farmers of Punjab are:
1. Crop Failure: Agriculture in Punjab depends heavily on monsoon. Insufficient monsoon
results in less production and drought. On the other hand, heavy rainfall damages the crop.
Farmers are dependent only on agricultural income. So, in both the cases of crop failure,
farmers commit suicide due to insufficient income and being incapable to meet daily needs.
Source: http://punjabimohalla.com/drought-situation-in-punjab-state-demands-special-package/
Fig. 1
2. Small land holdings: The land holdings are becoming small. Inherited land is divided among
all siblings, which results in small land holdings. The production in small land holdings is not
15. 14
a profitable business and results in less income. So, small and marginal farmers are forced to
live in poverty which sometimes becomes the reason of their suicide.
3. Unnecessary credit: With small land holdings, the costly modern tools of cultivation are not
affordable. But due to social obligations and show-off, small and marginal farmers in Punjab
are indulged in unnecessary purchase of agricultural tools even if they don’t afford it. For this,
they take unnecessary credit. But due to small land holdings and less production, they are
unable to repay the loan.
4. Depleting water level: Punjab mainly produces wheat and rice. Cultivation of rice requires a
lot of water. Due to less interest of farmers in crop rotation, there is monoculture of rice-
wheat rotation only, which has higher requirement of water resulting in depletion of water
level in Punjab. The average fall of water table in the central Punjab was 0.55m/year during
the last decade. As reported, the ground water level declined at the rate of even 0.75 to 1
m/year at some places of Punjab (Hira and Khaira, 2004). Due to depletion in water level,
farmers have to get the bores of tube-wells deepened to get sufficient water. Fig. 1 shows a
distressed farmer of Punjab in his field suffered by drought.
5. Pressure of Credit Agencies or Money Lenders: Agricultural credit is key input for farmers.
Due to illiteracy and complex formalities for credit by banks, the farmers get credit from
Money-lenders or Commission Agents (Aartiyas) as they find it an easy and simple way to get
credit. These money lenders charge a higher amount of interest. The farmers live under
depression due to insufficient time for repayment, high amount of interest etc.
6. High cost of inputs: The rate of chemical fertilizers, pesticides and insecticides are increasing
every year. On the other hand, the farm income is not increasing at the same rate. So, due to
decreasing profit margin, farmers are becoming poorer.
7. Less availability of farm labour: During the last few decades, labour from Bihar, Uttar
Pradesh etc. used to come to Punjab as agricultural labour. But after the Indian government
has started employment generation schemes like NREGA (National Rural Employment
Guarantee Act), NRLM (National Rural Livelihoods Mission) Aajeevika etc., these labourers
generally get employment in their home states. It results in lack of farm labour in Punjab. Due
to less labour availability, the local labourers are hired at higher cost, which again decreases
the profit of farmers.
8. Poor Marketing of crops: A stated fact is that farmers do not get a fair price for their crop.
The price that consumers pay does not fully go to the farmers and the middlemen and traders
get a large chunk. The reason for this is because farmers cannot reach the consumers directly
and they have to be dependant on middlemen and traders. Fig. 2 shows the scene of a Grain
market (Mandi) in Punjab.
16. 15
Source: http://www.dailymail.co.uk/indiahome/indianews/article-2767170/
MY-BIZ-Farmers-set-harvest-bumper-Basmati-crop-despite-drought-Punjab.html
Fig. 2
9. Social Factors: It includes expenditure on marriages, social functions etc. It is a matter of fact
that agriculturalists borrow 53% of their total borrowings for unproductive purposes and due
to social obligation, they spend lavishly on marriages, construction of big houses, purchase of
expensive cars etc. This results in huge economic burden on farmers.
The above factors make the condition of farmers very critical. They have no other source of income
and are thereby compelled to live in clutches of poverty. Due to illiteracy, the farmers are unable to
move to other job sectors. Even if some are educated, their mindset is orthodox and they are not
willing to move to other jobs. Thus, the unfavourable economical and social factors force the
farmers to vicious circle of poverty and financial crunch.
Forced by this financial crunch, about 5,000 farmers and farm labourers have committed suicide in
Punjab state during the period 2000 to 2010, with an average of 500 suicides a year or three
suicides in every two days. Out of these 5,000 suicides, about 3,000 farmers have committed suicide
in just two districts of Punjab i.e. Sangrur and Bathinda. These are the shocking findings of a state
government commissioned survey conducted by three universities of the Punjab state –
Punjabi University (Patiala), Punjab Agricultural University (Ludhiana) and Guru Nanak Dev
University (Amritsar).
NEWS in various Newspapers
Two debt-ridden farmers commit suicide
– May 22, 2014 (Bathinda, Punjab) HTC, Hindustan Times
In Punjab, three farmers kill themselves every two days
– May 26, 2014 (Chandigarh) Tribune News Service
17. 16
Debt-ridden farmer commits suicide in Punjab
– September 07, 2014 (Chandigarh) Outlook
These types of news regarding farmers’ suicides in Punjab could be seen almost every week.
According to above mentioned news, a farmer who was allegedly debt-ridden, committed suicide by
jumping before a train in Chehlanwala village in Mansa district of Punjab, police said. According to
villagers, the farmer Roop Singh (62) was under a debt of Rs. two lakh and was under depression as
his crop (about three acres) got damaged due to torrent rains. Fig. 3 shows the protest by family
members of the farmers (who committed suicides owing to debt) outside a district administrative
complex in Punjab.
Source: http://www.dailymail.co.uk/indiahome/indianews/article-2798501/
protesters-slam-apathy-punjab-government-farmer-suicide-compensation.html
Fig. 3
Besides Punjab state, farmers in other states like Maharashtra, Odisha, Karnataka, Kerala and
Andhra Pradesh are also committing suicides. According to National Crime Record Bureau (2010),
in India, 10720 farmers committed suicide in 1995 and 16603 farmers in the year 2000. Data also
shows that in year 2005, total 17,131 farmers committed suicide and 15,964 in the year 2010, with
a total of 2,56,913 farm suicides from 1995 to 2010.
18. 17
Conclusion
The critical situation of farmers puts a big question-mark on the concept of planning for agro-rural
development in the country. Agriculture sustains the national economy, but it is still the most
neglected sector. No one can afford to remain insensitive to the increasing cases of suicides
committed by farmers. Governments at Centre and State level should come forward to take
adequate measures in this direction.
Easy availability of credit facilities should be ensured in order to save the farmers from clutches of
moneylenders and commission agents. The government should adopt the strategy of Self-Help
Groups (SHGs) to provide low cost credit to the small and marginal farmers because these farmers
are dependent on the moneylenders and commission agents for their credit needs.
Marketing of crops is a major issue to be solved by government. Role and number of middlemen
should be reduced to minimum so that the farmers should be getting large chunk of price given by
consumers for their produce. Minimum support price has to be increased and subsidies should be
given to farmers on farm inputs. A comprehensive ‘Agricultural Insurance Scheme’ should also be
launched. Organic farming should be promoted to avoid or minimize the cost of pesticides and
fertilizers. Agriculture policy needs to shift from its current bias of ‘corporates first’ to ‘farmers
first’.
Farmers should be encouraged to adopt allied activities like dairy farming, fisheries, bee-hiving,
poultry farming etc. to lower the burden of livelihood on agricultural sector only. Subsidies and low
cost loans should be provided for these purposes. Specific attention should be given to cover cash
crops – like cotton, sugarcane and edible oils.
Bibliography
This study has been collated by taking excerpts from the following sources:
Hira, G.S. and Khaira, K.L. (2000), “Water Resource Management in Punjab under Rice-Wheat
Production System”, Research Bulletin, Punjab Agricultural University, Ludhiana.
National Crime Record Bureau (2010)
Indian Express, “High Inputs Affecting Farmer’s Profit Margin”, Indian Express, Chandigarh,
October 20, 2003
Rawat, Vihal (2003), “Time for Policy Readjustment”, Agriculture Today, January 2003 issue.
Nisha Sharma (2003), “Wheat Granary Suffers,” Sahara Times, 4 October 2003.
Sample Questions
1. Do you think that agriculture could be a profitable business in near future even for small and
marginal farmers? Give reasons to support your answer. (5)
2. Write a critical note on situation of farmers in your state. (5)
19. 18
Marking Scheme
1. Agriculture could be a profitable business in near future even for small and marginal farmers.
Following steps are needed to be taken by Centre and State governments:
Easy and low cost credit should be provided to farmers.
Grants and subsidies should be given to purchase agricultural inputs.
Marketing of crop should be channelized and role of middlemen and traders should be
reduced to minimum.
Minimum support price of crops should be increased.
Farmers should be encouraged to adopt allied activities like dairy farming, fisheries,
bee-hiving, poultry farming etc. to lower the burden of livelihood on agricultural sector.
Any other relevant point written by student (To be assessed as a whole, 5 marks)
2. Students should write about the condition of farmers in their own state:
Which crops are being sown in your state? Do the farmers get a fair price for their crop?
Are the farmers satisfied with their income from agriculture? If not, why?
Do the farmers in your state have easy access to credit at lower rates?
What are the main sources of loans to farmers in their state?
Any other relevant point written by student (To be assessed as a whole, 5 marks)