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Meeb Assignment on 'Impact of Dismantling Administered Prices on Petrol and Diesel in India'

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Meeb Assignment on 'Impact of Dismantling Administered Prices on Petrol and Diesel in India'
Impact of dismantling Administered Prices on Petrol and Diesel in India

Xavier Institute of Management Bhubaneswar (XIMB) EPWP Batch II (2011-12) Macro Economic Environment of Business (MEEB)

Prepared by
Name :- Priyanka Sharma Roll No:- U811026

Professor
Dr. Latha Ravindran

Date
03/Dec/11

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INDEX S.No 1 2 3 3.1 3.2 4 5 6 Introduction Objective Detailed Analysis for crucial & main issues Need for deregularisation Impact of dismantling Administered Prices on Petrol and Diesel in India Observations Conclusion Bibliography Contents

Page 3 4 4 4 6 7 8 9

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1.Introduction:In India fuel prices were controlled by government .Although government announced the dismantling of Administered Price Mechanism (APM) effective from 01/Apr/2002 in order to move towards market prices for petroleum products. In the context of the study, Administered Pricing Mechanism refers to the mechanism under which the prices of raw material, transportation and those of the finished products are regulated by government .In the case of Oil industry, the production, prices and distribution of the crude oil and petroleum products were being administered by Ministry of Petroleum & Natural Gas. The APM has been dismantled in phases which started from April’98 and got completed by the end of March’02. Dismantling of APM means decontrolling or deregulating of the petrol prices that means government will no longer be subsidizing petrol prices and the prices will be purely linked to the international crude prices .In the case of diesel , though ,it will be only partially regulated (the reason may be to avoid sudden hike in inflation) . LPG and Kerosene will continue to be subsidized. Below Graph showing the hike of Petrol prices from 1989 to 2011 drawn for India’s 4 Metro Cities

Delhi Petrol Prices Trend

Mumbai Petrol Prices Trend

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Kolkata Petrol Prices Trend

Chennai Petrol Prices Trend

2. Objective:Objective of


Bibliography: The following links /web pages were highly useful in collecting data and for interpretation                  http://www.petroleum.nic.in http://economictimes.indiatimes.com www.insigniaconsultants.in www.rediff.com www.thehindu.com http://expressbuzz.com http://www.investopedia.com http://www.tflguide.com http://www.mypetrolprice.com http://www.bloomberg.com www.crisil.com http://www.indiastudychannel.com http://www.yourmoneysite.com www.rbi.org.in www.cartoonstock.com www.simon-cooper.net/ www.monkeywong.com 9 | P a g e
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