• Dr.G. Kavitha

India imports 82% of its crude oil needs from other oil producing countries. In the recent past months, petrol and diesel prices are rising persistently. Despite many factors alleged for this price issue, cured oil price and rupee depreciation against US dollar are two major causes which contributes retail fuel price hike. Taxes contributes 43% and 33% of the retail price of petrol and diesel respectively. It is predicted to grow crude oil demand in India is 500 million tones per year by 2040, but persistent increase in oil prices might act as a dampener for the rate of growth from now until 2040. The global oil demand will increase by 15.8 million barrel per day (bpd) and the demand growth of India will be 5.9 million bpd which is about 24 percent of the global gain. Indian economy is very sensitive to oil prices. According to the Economic survey 2018, a 10 dollar price increase per barrel of crude oil in the global market can reduce country’s GDP by 0.2 to 0.3 percent points, while increasing inflation by 1.7 percent and affect the Current Account Deficit (CAD) by 9 to 10 billion dollar. In this article, the Fuel pricing system in India, various causes of fuel price hike and the positive and negative impacts which the country facing due to fuel price rise are discussed in detailed in various topics. Many suggestions also included, to mitigate this price issue.

Crude oil, price hike, imports, retail price, petrol, diesel, excise duty, market driven, global market.

"FUEL PRICE ON A STEEP RISE IN INDIA, CAUSES AND SOCIO-ECONOMIC IMPACTS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 11, page no.164-179, November-2018, Available :http://www.jetir.org/papers/JETIR1811923.pdf

"FUEL PRICE ON A STEEP RISE IN INDIA, CAUSES AND SOCIO-ECONOMIC IMPACTS", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 11, page no. pp164-179, November-2018, Available at : http://www.jetir.org/papers/JETIR1811923.pdf