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PETROL

VS

DIESELCARS

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INTRODUCTIONDiesel and Petrol are strategic commodities; they play a vital role in the socio-economic development of a country. Any uncertainty about their supply can impactthe functioning of the economy. In order to reduce this uncertainty it is importantto plan and use the resources judiciously. But, before planning, it is essential tounderstand the consumption pattern of these products. entative information

pertaining to category-!ise overall consumption is available !ith different sources but there is no correct picture available on category-!ise retail sales of Diesel "Petrol, as it is not maintained by dealers operating the retail outlets. It is importantto note that during last one decade, retail share in total diesel sale has gone up from#$.% to $&.' per cent in &(''-'&

he objective of the study is to find out effect of rise in petro prices on sales of carsin I)DIA, in particular the effect on sales of petrol and diesel cars.

BACKGROUND OF STUDY Though India i the !orld& "ourth*large t energy u er+ it percapita con umption i among the lo!e t in the !orld% Stagnantoutput o" crude oil ha increa ed e$ternal dependence "or it

ourcing ,--. on con umption #a i / and a a re ult crude oilcon titute the ma0or item in India& import #ill% Ri ing crude oilprice and volatility ha negative implication "or the Indianeconomy and the am#ition o" putting the economy on a highergro!th tra0ectory%In vie! o" the criticality o" energy u age "or economic gro!th+ it iimperative "or India to "ormulate appropriate policie and

trategie that reduce dependence on crude and product importand revie! pricing trategie o" regulated product + e peciallydie el% Lac' o" in"ormation on ectoral demand o" die el andpetrol not only po e a challenge "or ta'ing policy deci ion #ythe 1overnment+ #ut al o create a de2ciency !hen it come to

demand e timation o" the e product % Thi nece itatee timation and analy i o" die el and petrol con umption trend indi(erent ector 3 u#* ector o" the economy%

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The objective of the study is to find out effect of rise in etro rices on s!"es of c!rs in #ND#A$ in !rticu"!r the effect on s!"es of etro" !nd diese" c!rs%

CONSU&T#ON 'ATT(RN OF D#(S() #N #ND#A

It is very important to understand the consumption pattern of diesel in I)DIA. heconsumption of the diesel in private sector *cars"+ s has been around '% . heconsumption in the sector can form part of rationale behind deregulating of diesel

prices in I)DIA.

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*AR#AT#ON #N '(TRO) AND D#(S() 'R#C( O*(R Y(ARS

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S.No YEAR Avg. PETROLPRICE

AvG. DIESELPRICE

4 5665 57%88 59%575 5669 95%8 5-9 566: 98%-8 96: 5668 :5 988 566; :;%;: :6; 566- :8 9