Speech on rising in price in petroleum products
Answers
Answer:
India is the world’s fourth largest consumer of energy but with low per capita energy consumption. With the ever increasing number of private vehicles, an overall domestic consumption of petrol and petroleum product is on rise in India. There was a registered growth of 5% of the same in the year 2011-12 and to meet the increasing demand, government has to import more and more petrol. If spending of the country as a whole is considered then 80-90% is done to pay the import bills on petroleum products, which is accounted as country’s expenditure. Hence more demand of petrol than supply is a leading factor of its rising price in India.
But 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 price will further reduce his actual household income. Today every Indian spends almost half of his income on food items. If the petrol price in India keeps on increasing then every 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 in India. Eventually, more and more people will be pushed towards poverty line.
Why India needs to import oil? India does not have enough of oil to meet the growing demand of oil. Near about 1.4 million barrels of diesels are used per day in India especially by farmers, trucks and industry. So to meet the growing demand, most of the oil is imported from other countries resulting more expenditure. It has been seen that petrol price has increased about 10 times within the period of three years and still rising. Ultimate result of price hike of petrol is inflation.
Not only this but the condition of Indian currency is also not favorable at present. India is going through currency crisis where value of Indian Rupee is falling to US Dollar. That is why Oil Marketing Companies (OMCs) like Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL) are paying more for the same quantity of crude oil. Due to this, OMCs have lost near about 4,300 crores in the past six months for selling petrol at low cost.
The price of petrol used to be stable in India but with the deregulation of petrol in 2010, Oil Marketing Companies can increase the petrol price if large variation in cost is observed by these companies. Oil marketing companies do so by linking the domestic price of petrol to international market rates.
The rise in the price of petroleum products and consequences.
Petrol is an essential commodity in the day-to-day life of people. But the price of petroleum products is skyrocketing nowadays. It is hard nowadays to get enough petroleum products for our day-to-day needs.
Poor people are already struggling to keep two ends meet. For such an economy where the poor and middle class outweighs the rich, it is hard for a country like India to deal with rising petrol prices.
An increase in the price of petroleum products has a negative lineage on others social factors also. The rise in fuel price will rise the food price also.
It may adversely affect the banking field, pull down many sections of people into poverty, and increase inflation thereby affecting the employment of youth.
The recent war in Ukraine and Russia, and the hard political situations present in other parts of the world like Saudi Arabia are the major reason for the current rise in petroleum product prices. The favorable policies given by respective governments are helping to balance the increasing price rise.
At last but not least, we must remember that petroleum products are natural resources, not human-made. But anthropogenic reasons are behind their nonavailability. Remembering this, we need to have judicious use of petroleum products in such a way that they may be available for the future generation also. thus entertaining sustainability.
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