This document discusses India's petrol consumption and the impact of rising fuel prices on the economy. It notes that India meets 35% of its energy needs through imports and consumes 4.1 million barrels of oil per day. The causes of rising fuel prices in India include supply and demand imbalances, black marketing, taxation, deficit financing, and increased money supply. Socially, rising fuel use is driven by growing vehicle ownership and inefficient engine use. Politically, fuel price rises are affected by India's relations with oil exporting countries and its ability to reform domestic taxation and regulation.

1. Petrol price hike and its
impact on Economy
Case study by:
Raja rajiv Ranjan, Partap, Pritish, Rajanikanta, Shaheen, Sumit Singh

2. Introduction to India’s Petrol energy
consumption
 Energy is the prime source of economic growth and is vital to sustenance of a
modern economy.
 Future economic growth depends on the long term availability of energy from
sources that are affordable, accessible and environment friendly.
 India meets nearly 35 % of its total energy sources through import.
 India consumes 4.1 million barrels of oil per day(bpd). (1 Barrels = 159Liters)
 In India, Crude oil is not supplied as such in market. Crude oil is imported by
companies and bi products are sold.

3. Pricing of fuel

4. Taxation in fuel price in India

5. Fuel Prices in India

6. Causes of Fuel price rise in India
 Supply and demand Imbalances
 Black marketing
 Black money
 Rapid growth of population
 Taxation
 Deficit financing
 Increase in money supply
Economic reasons :

7. Social reasons:
 Increase in number of vehicles
 Use of personal vehicle for even short distances
 Huge loss of fuel due to keeping engines on at traffic.
 Poor R&D in automotive sector.

8. Political reasons:
 Rejection of India’s call by OPEC for
regulating crude prices through a price
band.
 Unsolved present issue of payment with
Iran, India’s second crude oil supplier.
 Absence of reforms to regulate automotive
sector.
 Huge tax revenues from import crude oil.