Impact of Fuel Price Deregulation in India

High desiel prices are a consequence of capitalism. As all fuel prices have been going up people are blaming the federal govenerment. They believe the president has influence of derterming the outcomes of tensions betwwen Israel and Iran. Some people blame incrased prices based on fears around the world. It all comes down to one thing to blame, capitalism. Calitalism can be great to an economic system because of its emphasis on efficienc and inbradible success rate at allowing those who control the means of production and resources to meet the demands of those with purchasing power. Capitalism is constantly evolveing and will impact the gap between current and future goals on oil prices.

A fiscal deficit is when a government's total expenditures exceed the tax revenues that it generates. A budget deficit can be cut by either reducing public expenditure or raising taxes. In this essay, I am going to analyse the benefits and costs of increasing tax rates to reduce fiscal deficits instead of cutting government expenditure.

Lynne Kiesling. “ Why Are Gas Prices High and Rising.” 23 Mar 2004. Knowledge Problem. 20 FEB 2013. .

There has been some talk about an “oil-extraction tax.” With this tax in place, it would force companies to fork out more of the tax instead of the consumer. If higher taxes are put in place for the producer ultimately they are not the ones paying the higher price the consumer is. Either way producers will receive revenue and in order to do that they will just raise their prices. The demand for fuel is based on necessity forcing consumers to pay outrageous prices because they need it. In addition to the tax, oil companies would have to disclose more information about their supplies and prices. Since the companies have market power, some believe with the tax in place it would reduce the price of the good.

Fuel Prices Increase - The recent fuel price increase sparked anger amongst motorists across the UK. A protest

Each time a person residing in the United States pulls up to a gas station to fill their tank it costs more money. This is particularly true of the past four years. Many focus the blame on the American Government but there are a multitude of factors causing gasoline prices to be so astronomically high. Middle eastern war, environmental precautions and government all seem to have a hand in the price we pay at the pump.

The following article is regarding what is most important to everyone around us regarding the pricing for gasoline at the pumps. This is a topic that concerns most people on this planet, why are the prices for gasoline so high and is it regarding the greed of oil producing companies to continue to keep rising the gasoline prices as high as possible. We will discuss the many reasons why these fluctuating pricing keeps occurring within our world market. We will use the retail gasoline pricing between the

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

Drivers realize that the price of gas is tied to the market value of crude oil, and has a direct impact to their daily commutes, errands, and vacations. However the reality is that the price of fuel has implications much grater than most consumers realize. Fuel prices affect nearly everything we purchase. For example, the price of farm commodities and food increase because farmers pay more for the fuel for their farm equipment and trucking firms pay more for fuel to get the commodities to market. These shipping “fuel surcharges” impact all goods

Because, goods which produced by the company of Gasoline, gas, oil, and other, which is a important need for the people , When the price rise or falling (globally) does not affect on the quantity of demand and supply

As long as the deficit is in proportion to GDP or Gross Domestic Product, the sum of a country’s goods and services, there is no significant fiscal risk to the economy. However there is a counter-argument that government deficits do matter. The argument is that if interest rates were to go up even a quarter point then that would lead to the need to take out even more debt to pay off previous interest payments. This would lead to the need to decide whether to decrease current spending on other programs such as healthcare or infrastructure to compensate for the new interest payments, or to maintain current spending and simply borrow more debt without attempting to curtail spending.Following the first would hurt economic growth and increase inequality, but following the latter would lead to the debt climbing higher at an increasingly fast rate that would risk causing massive inflation. Both sides make valid points.

The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most

Walsh (May 2013): ‘The Fiscal and Welfare Impacts of Reforming Fuel Subsidies in India’ URL: https://www.imf.org/external/pubs/ft/wp/2013/wp13128.pdf

The percentage of GDP in budget deficits may reduce in times of economic prosperity, as increased tax

Petrol, or also known as gasoline, is denoted as the light fuel oil which is obtained by the process fractional distillation of petroleum (Oxford Dictionary, 2013). Petrol is abbreviated from the word “petroleum”, which is derived from the Greek word ‘petros’ and oleum (Health Protection Agencies, 2011). Petrol started to be used as product name by a London company, Carless, Capel and Leonard at the end of the 19th century. Nowadays, it becomes an indispensable part of our life, which is widely used as the fuel in vehicles and petrol powered engines. It can also be used as the power generator of electricity. However, due to the strong oil demand from countries all over the world, even Malaysia as an oil-exporter country, for over the 20th century, fuel price has been fluctuating ever since and increasing from day to day. Back to the days before, a litre of fuel only cost us RM0.89, and it started increasing to RM1.10 since 1990’s. For the year 2008, a litre of petrol increased by 78 cents from RM1.92, which then cost us RM2.70 (The Star, 2008). Today, a litre of RON97 is retailed at RM2.85 per litre, whereas RON95 at RM2.10. The increase of price on fuel pump at around 20 cents per litre may be helping the government to save about RM1.1 billion this year, and even RM3.3 billion every year in future(Bloomberg News,2013).