Elasticity of Demand of petrol consumption in India by tushar mittal

MACRO FACTORS IMPACTING PETROL IN INDIA-• IMPO- EXPO Policy

• CAD (Current Account Deficit)

• FOREX Reserve

• Political Turbulence

• Crude Oil Value - Sustainability

• Govt. Subsidies

•Restrictive Market Share

MICRO FACTORS IMPACTING PETROL IN INDIA-• Net Disposable Income

• Inflation

• Manufacturing Sector

• Substitute Goods ( LPG / CNG / Diesel / Bio Hybrid Fuel)

• Consumption and Manufacture of Petro Based Product

Observation

• Petrol Ever in Demand Product.

• With Change in Substitute Goods and Price Changes across Global and Domestic Level it remains inelastic.

• With Ed Value in the range of (<1) Petrol remains highly inelastic and In demand Product

• Though Index seems to be rising but exhaustion of petrol reserve is alarming

Economy & Finance