Oil Price

OIL PRICE

Oil prices are the biggest concern of every common man. Infact after deregulation of petrol, there is a big surge in prices. The fluctuation have increased by many folds. Whenever there is a hike, the govt. distances itself from the hike by pointing its finger towards the global hike in oil prices.Recently the increase in petrol price by rupees 7 per litre, still remains the highest ever hike amended in a single day.

The subsidy given for diesel and LPG actually keeps the common man in a kind of comfort zone. The LPG cylinder which weighs 14 kg priced after subsidy at approximately 400INR is still the lowest when compared with any other nieghbouring countries except OPEC nations. Diesel and LPG regulations fully function under the control of govt. Diesel which is the main mode of transportation for all the basic needs of people is a key player in fixing up of commodity rices. Increase in diesel prices indirectly increases the commodity prices which loops into inflation, GDP etc ..

With rising losses to the govt run oil companies due to increase in subsidy, the govt has deviced a strategy wherein the susbsidy will be exempted for diesel passenger cars which actually accounts for 30 % consumption of subsidised diesel fuel. This is still at the planning stage, but implemented will definitely help in bringing down future increase in diesel prices to an certain extent.

After the awareness on global shortage in oil have spread across the globe, nations have focused on meeting their needs through solar,wind and hydro power and recommends the usage for all the developing and developed nations.

Oil has become a very basic need because of its endless demand for transportation. The rising consumption and burning of carbon into atmosphere, actually demands for more efficient use of fuel.