IMPACT OF PETROL PRICES ON CONSUMER CONSUMPTION DURING COVID-19

In present scenario petrol has become an indispensable part of our day to day life, and one cannot imagine his life without it. But the petrol prices are increasing vastly like sky rocketing, and it is going to affect each and everything in our life .Petrol prices are affecting various sectors like transportation,FMCG, Textiles etc, which in turn affects the prices of daily necessities. Increase in petrol price have more impact on poor and middle class people rather than high class people because they spend more than half of their income on food and only tenth part on fuel consumption. Hence it is important to study the impact of petrol prices on consumption of petrol by middle and poor class people. This study mainly emphasis on how the hike of petrol prices will affect the consumption of petrol by different kind of consumers during covid-19.

Determining the Household Consumption Expenditure’s Resilience towards Petrol Price, Disposable Income and Exchange Rate Volatilities

One of the core objectives of economic development is to improve people’s standards of living. However, both standards of living and consumption expenditures are often determined by disposable income, crude oil prices and exchange rate volatility. The current paper employed quarterly time series data from 2002 to 2020 to analyse the responsiveness of household consumption expenditure to the petrol price, disposable income and exchange rate volatility in South African. The empirical outcome suggested that a long-run relationship exists between variables under consideration. Additionally, the current level of consumption expenditure was found to be determined by income level and exchange rate volatility whilst changes in petrol price had no significant effect on short-term consumption expenditure. Based on these findings, the study suggests that the South African policymakers and government authorities implement policies and strategies that enhance both household income and exchange rate. Those strategies may include strengthening the country’s currency, production improvement, inflation rate reduction, and the creation of job opportunities.

Partial Fuel Subsidy Removal in Nigeria

The ripple effects of the petrol crisis on the Nigerian economy is multi-faceted: price distortions, volatilities, dutch-disease, corruption, and inefficiencies. This study assessed the effects of partial fuel subsidy removal on agricultural sector and Nigerian economy. The study made use of secondary data obtained from Central Bank of Nigeria Statistical Bulletins, Petroleum Product Price Regulatory Agency (PPPRA), National Bureau of Statistics, Benue State Agricultural and Rural Development Authority (BNARDA), and FAO. Johansen co-integration model and t-test were the analytical tools used. After appropriate robustness checks and ensuring data stationarity, the study found that partial fuel subsidy removal had significant positive influence on the country's GDP, significantly reduced inflation rate, and also reduced life expectancy of Nigerians. Specifically, a percentage increase in petrol price significantly increases GDP by 9.8%; a percentage increase in petrol price increases the prices of rice and maize by 0.75% and 1.50% respectively. The study concludes that increased petrol price had positive effects on GDP and adverse effects on the prices of crop produce. Government should diversify and develop other economies and provide adequate infrastuctural facilities to cushion the effects of subsidy removal. Organic and low-input methods of farming should be adopted to reduce the need for fuel inputs to the food system at all levels.

Petrol price regime may fuel new Venezuela protests

Headline VENEZUELA: Petrol price regime may fuel new protests

Petrol price regulation in South Africa: Is it meeting its intended objectives?

The South African liquid fuels industry is a significant part of the economy. Historically, government policy focused on import substitution industrialization to support industry margins. This approach is called into question by the 2006 shift from net exports to imports and by inflated downstream regulated margins. This study focuses on the regulated petrol price. Import parity pricing regulation has not kept pace with market changes. A policy shift in 1998 towards market-related pricing has not materialized. Instead, regulated margins have increased over the last 20 years in real terms, partly attributable to methodological errors in the regulatory accounting system. The long-term excess of service stations persists despite declining petrol and diesel volumes between 2005 and 2019. Estimates suggest that the petrol price could be lower by 0.70–0.80 rands/litre. Price deregulation is inhibited by political regulation and social policies entangled in regulation.

Petrol Price: Pre & Post Goods and Services Tax (GST) in India

Goods and services tax is an all-inclusive tax levied on manufacturing, sales and consumptions of goods and services within a country, introduced by the Indian President on 1st July 2017, which subsumed all indirect taxes levied by both Governments(the central and the state). However petrol was kept out of GST framework in order to preserve the revenue acquired by the state. the present study gives you the answers for the questions like what is GST?, What is the reason for not implementing GST on petrol? What will be the price of one liter petrol when the same is subsumed in GST? This paper highlights the comparison between the present tax rate on petrol and the rate at which petrol would cost when it is subsumed by the GST.