Essay on price rise of petrol in india

Within three years petrol price has increased 10 times and is still increasing. The part of this earning will be offset by losses from lesser demand for exports because of the economic downturn suffered by trading partners.

The economic reaction to greater inflationhigher unemploymentless exchange rates, less real output also affects the overall influence on the economy for the long-term. Black money encourages the people to the demand of goods and services in the economy thereby leading to high rise in general price level.

United States Despite of continuous claims of curbing price rise making by the government, prices of commodities rose by more than per cent in comparison with the per capita income in the past one year. There is a strong correlation between food and fuel prices and can be tackled if people could control the fuel consumption and provide the agriculture industry the sources they needed to produce more.

Thirdly, tax burdens on the public should be reduced. Greater fuel prices will result in an increase in the value of the dollar ,therefore, oil exporters invest their windfall earnings in US dollar controlled assets and transactions demand for dollar rises. Price rise does occur in the process of economic development.

Developing alternate sources of energy like solar energy etc.

Price Rise in India

It is generally seen there is surplus production of wheat in States like Punjab and Haryana but this surplus produce is not swiftly transferred to other States.

If the fuel prices remain higher, the economic situation of fuel importing nations will be at risk. These factors are affecting changes in global trade flows because of the increasing fuel costs.

Producers will sell the stock at lesser price again to cover the cost that result in deflation. The large firms such as airlines, holiday firms and shipping industry will increase their prices due to the greater fuel prices.

Auto manufacturers have decided to manufacture electric cars and they might make more profits if oil prices will rise in the future. High prices also adversely affect the exports of the country and distort the balance of foreign trade.

Increase in petrol price will increase the transportation cost, increase in transportation cost will increase in price of goods, and this increase in price of goods would gradually force the people to loosen their pockets even more, and so on like this, the chain will further propagate. The high oil prices have negative impact on farmers that makes difficult for them to grow season crops because fertilizers are soaring due to expensive fuel.

So the thing we can do is to reduce oil consumption by using public transport for travelling to routine places like our office, markets etc.

Stop blaming government and think how to solve it.

Essay on Rising Prices in India

Rising fuel prices lead to high shipping costs. The oil price rise results in a transfer of income from oil importing to oil exporting countries according to a shift in terms of trade. There are several reasons for this steep rise in prices. As a result, the corporate sector will be worse-off.

During the various Five-Year Plans, while the public expenditure persistently increased, the production targets were never realized. But nothing can mitigate the situation unless the growth of our population is checked.

This has obviously sent shock waves to the common man who is trying hard to make both ends meet. Developing nations find it difficult to adjust the financial turmoil damaged by higher oil import costs.

While consumers increase their expenditure on servicing debtthey do not have enough money to purchase other products. While oil prices increasecosts rise for transportation firms, put pressure on their profits and forcing them to increase prices, influencing all the other firms that rely on transporting goods and people.

The huge volatility of this crucial economic input has made a sensation interest in problems like peak oil, and the increasing global demand is resulting in higher investment in renewable energy. They make a economic activities uncertain and unstable, causing great unrest in the minds of the people.

The additional dearness allowance which the government sanctions from time to time proves of no use to them, because their purchasing power actually goes down.

The increase in the price of oil has risen the cost of fertilizers which need petroleum or natural gas to manufacture. Cutting off fuel supply or switching the engine off when traffic is halted for long.

280 Words Short Essay on Price Rise in India

However, there were crucial impacts: Costs of fertilizer raw materials have been rising while rose production of staples rises demand.

Unemployment will rise that has negative impact on shrinking economies. Fourthly, in an underdeveloped economy like ours, the first increases in income always tend to be expended on food articles.

Some of such reasons are back market, corruption, faulty taxation system, wastage, expenditure on luxuries, bloated bureaucracy drawing heavy salaries, excessive profit charged by manufacturers on their products, etc.

This affects the prices of daily essential commodities which are transported on a daily basis. More demand and less supply of these food items is the main reason behind this price rise, a situation arising out of lower market arrivals and lower procurement. Following are the causes of price rise: According to the net-oil exporting nationsa price rise increases their real national income due to the higher export earnings.Rise in Oil Prices and its effect on the India Economy.

The soaring price of oil is having a major influence on India's economy. India spends a lot of money financially supporting its citizens with fuel every year. Petrol in India is a lot cheaper than it should be.

However, Oil firms in India are still buying oil at international market value. The rise in oil prices it is the result of the continued fall of the dollar.ÂÂ As the value of the dollar falls and oil producers demand more and more for each barrel, the price of crude goes up.ÂÂ The greatest component of the price of gas is the cost of crude.ÂÂ An increased oil price results in increasing inflation, which negatively.

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Price rise does occur in the process of economic development.

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But in India the rise of price has been much higher than what it should have been. In India has reported to have the circulation of Rs. crores as unrecorded money, i.e., Black Money in the country. Black money encourages. Whenever we go to make some purchases in the market, we learn to our great disappointment that the prices of most of the commodities have risen.

Petrol price hike and its effects on our day to day life

And sometimes quite exorbitantly. There are several reasons for this steep rise in prices. Increase in essay price will increase rise transportation cost, increase in transportation cost will increase in price of goods, and this increase in price of goods would gradually force the people to loosen price pockets even more, and so on like this, the chain will further propagate.

Essay on price rise of petrol in india
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