A COMPREHENSIVE LOOK AT THE EVOLUTION OF THE INDIAN PETROLEUM INDUSTRY- PAST TO PRESENT

Abstract

Petroleum refining industry plays a key role in providing energy for all sectors of any economy. The developments and economic condition in the industry is an important matter of national interest. Economic growth is inextricably linked to energy. Energy is required for almost all economic activities. Petroleum products are the prime sources of energy in the world. Many significant changes have been taken place in India’s refining industry with resultant challenges. The main problem the nation all over has been facing is the price of petroleum products. This crucial non-renewable energy resource is scarce and is concentrated in a few countries/regions of the world. In India pricing of petroleum products faced several structural changes starting with import parity basis during post independence to cost plus pricing and then back to import parity pricing in last several decades and now trade parity price. This paper is a modest attempt to highlight the various phases of pricing mechanism of petroleum products from the early days to the present days.

Key Words: History, Petroleum Products, Pricing, Problems, Challenges