Crude Oil Price Vs Petrol Price India Chart
Introduction
Crude oil and petrol prices are one of the most talked-about topics in India, as both have a significant impact on the economy and the daily lives of people. In this article, we will discuss the relation between crude oil price and petrol price in India and how they affect each other.
What is Crude Oil?
Crude oil is a naturally occurring, unrefined petroleum product that is found beneath the earth's surface. It is a fossil fuel and consists of hydrocarbons, organic compounds, and other impurities. Crude oil is a vital resource for the production of various fuels, including petrol, diesel, and jet fuel.
What is Petrol?
Petrol, also known as gasoline, is a refined petroleum product that is used as a fuel for cars, bikes, and other vehicles. It is a mixture of hydrocarbons and other additives that help to improve its performance and reduce emissions. Petrol is one of the most consumed fuels in India and has a significant impact on the economy.
How are Crude Oil and Petrol Prices Related?
Crude oil and petrol prices are interdependent, as the price of crude oil affects the cost of refining petrol. When the price of crude oil increases, the cost of refining petrol also increases, leading to a rise in petrol prices. Similarly, when the price of crude oil decreases, the cost of refining petrol also decreases, leading to a fall in petrol prices.
Factors Affecting the Crude Oil Price Vs Petrol Price India Chart
Several factors affect the crude oil price vs petrol price India chart, including:
- Global Crude Oil Prices: The crude oil prices in the global market have a significant impact on the Indian petrol prices, as India imports a significant portion of its crude oil requirements from other countries.
- Taxes: The taxes levied by the central and state governments also affect the petrol prices in India. The higher the taxes, the higher the petrol prices.
- Exchange Rate: The exchange rate between the Indian rupee and the US dollar also affects the petrol prices in India, as crude oil prices are denominated in dollars.
- Demand and Supply: The demand and supply of crude oil and petrol also play a significant role in determining their prices in India.
Crude Oil Price Vs Petrol Price India Chart
The crude oil price vs petrol price India chart shows the relation between the two prices over a period of time. The chart indicates that the petrol prices in India are highly correlated with the global crude oil prices.
Impact of Crude Oil Price Vs Petrol Price India Chart on the Indian Economy
The crude oil price vs petrol price India chart has a significant impact on the Indian economy, as petrol is a crucial input for various sectors, including transportation, agriculture, and manufacturing. High petrol prices lead to an increase in the cost of production, which affects the prices of goods and services, leading to inflation. On the other hand, low petrol prices can stimulate economic growth by reducing the cost of production and transportation.
Conclusion
The crude oil price vs petrol price India chart shows the interdependence between the two prices and their impact on the Indian economy. As India is heavily dependent on imports for its crude oil requirements, the global crude oil prices have a significant impact on the Indian petrol prices. The government needs to strike a balance between the taxes levied on petrol and the impact on the common man's daily life.