Rising Fuel Price in Kerala
Rising Fuel Price in Kerala
Rising Fuel Price in Kerala
ABSTRACT:
India being one of the largest and growing consumer of
energy in the world has been relying heavily on crude oil
for its production of energy and consumption purposes.
The growing demand and increasing fuel prices have
always been issues for the general public. This study aims
to understand the causes and impacts for the rising prices
in recent times that have been influencing the economy as
whole and provide solution to cope with this externality.
Keywords : Fuel price, Kerala, Crude oil, Fuel
subsidies,Ubanisation, Analysis, Impact on people.
INTRODUCTION
Energy has been a controversial topic since decades
with the question of how long can we survive by
depending on the existing sources of energy. One common
and influential source of energy is fuel the major sources
being fossil fuels, diesel and various array of chemical
compound fuels. The recent dependence on fuels,
especially fossil fuels is on a high time rise and has been
shaping the global economy.
Fossil fuels such as coal, petrol, and diesel have been
impacting human lives in terms of rising prices, supply of
these fuels, global warming, increased expenditure
patterns and need to finding reliable alternatives of these
fuels. This is the common context all over the world
especially in India, newspapers and notifications in our
smartphones have been inundated with the never ending
news of the rising prices of Petrol and Diesel in India.
While a very few people went unscathed by this
development, the majority of Fuel consumers of the
country, flinched on the news of surging fuel prices. Fuel
price has increased for the fifth continuous day in the
state. One litre of petrol now costs Rs 93.03in kerala
whereas a litre of diesel is at Rs 86.23.
A lot of public outcry over this conundrum has been
expressed through various petitions as well through
tweets and other social media channels. At this point of
time, it is imperative to have a close look into the major
reasons of this Fuel Prices- the causes; as well as how
people are affected by this - the impact.
Literature review
(Parikh & Shukla, Urbanization,energy use and
greenghouse effects in economic development:Results
from a cross-national study of developing countries,
1995)This paper assesses the effect that usage of Energy
and the associated increase in the fuel pricing will possible
have on the Economic Development of the country – in
general and urbanization in particular in terms of the
changing patterns of energy use. Also this paper put
forward what the policies imply toward urbanization and
development of the countries
(Bhattacharya & Batra, 2009)In this research paper, the
author attempts to investigate with International prices of
oil impacts the domestic inflation and output growth in
India. The study focuses on two main instances for the
investigation – first when fuel prices are directly
proportionate to the international fuel
(Anand, Caody, Mohommad, Thakoor, & P Walsh, 2013)In
this study, the analysis is on the fuel pricingapproaches
taken in the country along with the necessity of fuel
subsidy reforms and reform options. Thepaper looks in
detail into the degree of fuel subsidies in action in the
county and the increases in domestic fuel prices required
to counter the subsidies and also assesses the effect these
increases in price will have onthe inflation and household
real incomes.
(M.K Anand, 2016)This articles particularly talks about the
impact that rising fuel prices have in the economy –
particularly that of the agriculture sector. It analyses
deeply on the implications of these persistent rise – both
direct and indirect. The finding of this research have
stronger implications than commonly recognized; for
inflation cost and cost of implementing the policy on food
security.
(Aswin and Biwin 2019) This research has already
predicted the Petrol Prices would become INR 100 per
liter in the coming future. The impact of the same would
also have positive and negative implications. On the long
run,the increased usage of Public Transport and demand
for cleaner energy would result in a betterenvironmental
friendly resources.
Research Design
Statement of Problem: India is currently facing rising price
of its fuel - Petrol and Diesel. There are multiple factors in
motion that contributed to this increase. This proposed
research aspires to look into the major causes that have
contributed to this rise, whether the Government has a
major role to play in this pricing game and what are the
possible impacts of this on people of kerala.
Scope of Study: We have based our study in the city of
kerala. The fuel we are focusing on are Petrol and Diesel -
the two fuels which have been skyrocketing. Though the
causes of increased fuel prices may be general, the impact
of the same would be specific to this particular region
under study.
Sources of Data:
We have relied on both primary and secondary data to do
our research. The primary data through questionnaires
were used to find out the impact of Fuel prices in kerala.
The Secondary Data were used are from internet, paper
and from other research that have been already
conducted.The data analysis tool used is questionnaire.
The questionnaire was circulated in the city of kerala
through Google Forms .The collected data were converted
to pie charts to get the number of participants under
various categories provided in the questionnaire.
Objectives
The objective of this research is to find out:
1. If there is any relation between Central and State in the
pricing of Petrol and Diesel .
2. To find out the impact of rising fuel prices on the city of
kerala.
3. To provide solution for the problem .
Expected Outcome
After the analysis we expect to find the causes mainly
affect the increasing price level of fuel and to find a
solution as to mitigate this burden on the general public
by analyzing the pricing structure of fuels and to providing
ways for bring the existing price level under control which
is possible by the government.
Limitations of Study:
The study is focused on the Region of kerala. Therefore,
the results of this study not necessarily generalize the
impact of Rising Fuel prices for the entire country. The
data acquired from the questionnaire is imperative to our
studies at the same time it does not give a full onset of the
views of the people and is obtained from a close but
approximate reliable sample.