Why the Oil price crisis in India?
In the last week, our finance minister has announced that there may be no subsidy for the diesel prices for cars. It is one of the news among many news which is coming on its way about the fuel prices in India. Especially in India, fixing the fuel prices is one of the daunting task for the government. Indian govt. gives explanation to the common man for the reason of price hikes which can be understand only by the experts. There are numerous things involved in the fuel prices, one of the important reason why the crisis comes in India is political influence on the issue. The intention of this article is to explain in the simple terms to understand the jargon used in the oil industry and how the Indian govt. decides the oil prices. If you have any thoughts, please post it in the comments section. Subscribe to our future articles here. What is Crude Oil?
Crude oil is a naturally occurring liquid composed mostly of hydrogen and carbon. We don’t need any scientific explanation of the term. As we know, in day-to-day life everything revolves around the crude oil and its availability. It is the most valuable commodity in the planet then diamond or gold. If a country has the oil reservoir (the place where oil can be found), then its economy will be in the growth because every country needs the oil. It is the main reason why all the Arabian countries are very rich. There will be lot of geopolitics around it if a country has the oil reservoir. You would have understood the reason why America has captured the Iraq from Saddam Hussein. What we are using in our life as Petroleum, Diesel,etc. as the end products of the crude oil. A company needs to invest billions of dollar to drill the earth and explore the oil sands. The process is called as Upstream in the oil industry. Once they found the oil sands, they have to take the crude oil and send it to the refineries which needs to extract the specific usable products like...
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