≈Gather the information what causes the fluctuation in the price of petrol and make a frequency polygon to depict the data.
Please give the correct answer.
Correct answer will be marked as brainliest answer.
Answers
Answer:
factors affecting fuel prices in India
Step-by-step explanation:
Cost of crude oil:
Crude oil or unrefined oil is a commodity of the international market. The changes in the price of this commodity directly affect the price of petrol and diesel in our country. Whenever there is a change in the demand and supply of crude oil, the prices vary. In addition to that, international political relations and future reserves and supplies also have direct effects on the price of crude oil.
Price charged to dealers:
The crude oil is acquired and distributed by the Oil Marketing Companies (OMCs). The price charged by the OMCs to the dealers is an important deciding factor of the price of the fossil fuels. This price is also based on a number of factors which include the freight charges, the refining cost, and so on.
Commission for dealers:
The Oil Marketing Companies or OMCs pay a commission to the fuel dealers. The petrol pump owners have their earnings, cost, and profit covered in this commission. This is one of the components which makes up the price of the fuel.
Central excise duty:
The central government levies the excise duty on petrol and diesel. It should be kept in mind that the central excise duty is a pre-defined amount of money and not a percentage. Thus, the duty does not fluctuate with the price of the fuels. Over the past few years, the Government of India has increased the excise duty manifold. The current duty charged on petrol is Rs.32.98 per litre and that for diesel is Rs.31.83 per litre. This amount is constant irrespective of the rise or fall in the price of the crude oil.
Sales Tax or Value Added Tax (VAT):
This tax is imposed by the respective state governments. The VAT or sales tax is calculated after taking a few other factors into consideration such as the excise duty charged by the centre, the commission of the dealers, and so on.
Taxes imposed by the government:
The Government of India imposes a tax on both petrol and diesel. There are certain policies on the basis of which, the centre might change the tax structure. The change in this structure is mainly base on the marginal returns from the fossil fuels and the recovery of losses. The price of the fuels also changes on the basis of these taxes.
Demand for fuel:
With the number of two-wheelers and four-wheelers steadily increasing on the Indian roads, the demand for both petrol and diesel have been increasing as well. As the oil refinery companies in India have to acquire crude oil from the international market in order to process the same into petrol and diesel, the supply cannot be always fulfilled. When the supply is less and the demand is more, as per the laws of economics, the price of both the fuel is bound to increase.
Consumption ratio of refineries:
The crude oil imported to India are sent across to the refineries for processing. If the number of refineries is lower, then the overall quantity of petrol or diesel which will be available for sale will also be lower. This would also mean that the
Valuation of INR against USD:
One major factor that is responsible for the alteration of prices of petrol and diesel in India is the value of the Indian Rupee against the American Dollar. The crude oil which is refined for petrol and diesel is bought from the international market and the transaction is done in dollars. Thus, the strength of the USD against INR is a direct factor. If the American Dollar is stronger, the cost of purchasing crude oil will be higher. This will mean that the price of the finished products will also be higher.