The document discusses fuel prices in India, including how fuel taxes are allocated, major oil companies, price hike trends over the last ten years, and causes of rising fuel prices from economic, social, and political perspectives. It also outlines the current effects of fuel price hikes such as stock market crashes and future consequences. Steps for the government and public to take are proposed, including investing in public transport and carpooling.
5. Causes of fuel price rise in India
Economic Reasons
Supply and demand imbalances
Black Marketing
Black money
Rapid Growth of Population
Taxation
Deficit Financing
Increase in Money Supply
6. Causes of fuel price rise in India
Social Reasons
Increase in number of vehicles.
Use of vehicles even for short distances.
Huge loss of fuel due to keeping engines on at
traffic.
Poor R&D in automotive sector.
7. Causes of fuel price rise in India
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 of crude oil.
8. CURRENT
EFFECT
OF
FUEL
PRICE
HIKE
STOCK MARKET CRASH
