...fuel subsidy removal on the value of Nigerian Naira and local production in the country. Data for about eight different periods where fuel hike occurred in Nigeria was used, and a mathematical model with the aid of a graph, was also developed to aid estimated calculation of Naira’s value. We also deduced from this study that increase in fuel pump price has an adverse effect on the standard of living of the people, since fuel is essential for the transportation of major Nigerian commodities, such as Agricultural produce and other market product. The significant impact of the upsurge of petroleum pump price on the price of goods transport initiates this study; with the aim of checking its effect on the purchase value of naira. Though this study is totally neutral about the subsidy removal, its just to enlighten us on the topic and let viewers decide. Keywords GDP, Subsidy, Data, Scarcity calls for a quick intervention. In a bid to averting the continual occurrence of this problem, Nigeria government have decided to intervene by deregulating the petroleum sector in the form of subsidy removal. The aim of the government for doing this is to minimize, if not totally eradicate petroleum scarcity. Subsidy removal may however sound nice polite and beneficial, it is essential that there be a critical evaluation of the proposed mechanism for petroleum scarcity alleviation. Lessons from developed countries where this commodity has become...
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...source of earnings by operating their own retail stations. Our company is dedicated in providing quality petroleum products and services for all its customers and is geared towards helping elevate the lives of Filipinos. Vision Filoil’s vision is to become the national symbol of energy and power for the new generation. Filoil believes that the Filipinos can fight poverty by engaging in entrepreneurship as its competitive edge for growth and success. Long Term Goals Filoil is dedicated to uplift the Filipino entrepreneurial spirit as the catalyst for sustainable success and profitable business operation. Objectives * To profit * Sell about 2500-4000 liters a day * Build customer loyalty through good service and clean products * Increase sales by 10% annually * To offer the lowest possible price in the gasoline market Organizational Chart C. Product Category Review General description * Premium Gasoline “Flash Gas”- 93 Octane reading with engine cleaning additives * Unleaded Gasoline “Speedy Max”- 93 Octane Rating Lead-Free * Regular Gasoline- 83 Octane Rating * Biodiesel Fuel * Lubricants Sale Trends Gasoline is a necessity and it should be available at anytime of the day. Gasoline is one of the factors why the society goes on and the market prices rises. Gasoline makes everything faster than the way it is. People usually gas up before a price hike for them to save cash. Distribution Profile Filoil caters to both private and public cars. Filoil- Gonazaga...
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...A Commodity Price Change In The Malaysia Market A commodity is a raw material or primary agricultural product that can be bought and sold without qualitative differentiation across a market, such as gold or wheat. A Commodity also maintains a close universal price regardless of who produces it. The main commodities such as aluminium, cocoa, coffee, copper, corn, copper, cotton crude oil, lead, heating oil, gold, lean hogs, live cattle, natural gas, nickel, platinum, palm oil, soybeans oil, soybean, silver, sugar, tin, unleaded gas, wheat and zinc. Economic recovery will make food, metals and other raw materials more expensive in 2011, the head of the World Trade Organization said on Monday. Addressing a United Nations conference, WTO Director-General Pascal Lamy said the prices of crude oil, copper, gold, corn and soybeans would be rises most this year, with less pronounced increases in natural gas, zinc and cattle. Besides that, Frenchman said "2011 will see the prices of most commodities rise, as the rise in global GDP bolsters demand, led by emerging economies”, estimating worldwide economic output would increase 4 percent in 2011. Over 70 percent of the growth will come from commodity-intensive emerging markets. China, India and Latin America, in particular, will be acting as a 'pull' for global commodities. That’s means rising commodity prices could be a boon for countries where raw materials are grown, mined, produced and refined. The commodity price change related...
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...concept of supply and demand, how a business establish prices, how individuals make efficient decisions and how individuals cooperate with one another. Microeconomics is not an explanation for what happen in a...
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...Effects of Oil price Hike to the Consumers in the Philippines The 19th century oil became the big part of people’s life for the machinery and vehicles that people used for their daily living. Within a year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th century and is part of the different countries economy, and Philippines are one of the countries that have an independent fuel company that started in 1978. The Filipino owned company that offers fuel products ranging from automobile gasoline to industry lubricants and services such as storage and shipping. For Filipino, oil is very important why? Because of the company that just started, planning to be independent and to be one of the develop company all over the world. The possible negative effects of oil price hike in the Philippines are the steady increases in the price of fuel on the global market and because of the importance of fuel in the production, marketing, and especially to transportation of food products and the desire of every producer, consumers and to those people involve in using oil. And to that, it increases the price of fuels used for transportation and the oil to the market, then after too that it may also affects the price of foods that being sell to the market that have been undergo to a process transferring into different places. Lastly, the higher household energy bills can contribute to price oil price hike. Gas and electricity prices typically take...
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...Effects of Oil price Hike to the Consumers in the Philippines The 19th century oil became the big part of people’s life for the machinery and vehicles that people used for their daily living. Within a year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th century and is part of the different countries economy, and Philippines are one of the countries that have an independent fuel company that started in 1978. The Filipino owned company that offers fuel products ranging from automobile gasoline to industry lubricants and services such as storage and shipping. For Filipino, oil is very important why? Because of the company that just started, planning to be independent and to be one of the develop company all over the world. The possible negative effects of oil price hike in the Philippines are the steady increases in the price of fuel on the global market and because of the importance of fuel in the production, marketing, and especially to transportation of food products and the desire of every producer, consumers and to those people involve in using oil. And to that, it increases the price of fuels used for transportation and the oil to the market, then after too that it may also affects the price of foods that being sell to the market that have been undergo to a process transferring into different places. Lastly, the higher household energy bills can contribute to price oil price hike. Gas and electricity prices typically take...
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...of earnings by operating their own retail stations. Our company is dedicated in providing quality petroleum products and services for all its customers and is geared towards helping elevate the lives of Filipinos. Vision Filoil’s vision is to become the national symbol of energy and power for the new generation. Filoil believes that the Filipinos can fight poverty by engaging in entrepreneurship as its competitive edge for growth and success. Long Term Goals Filoil is dedicated to uplift the Filipino entrepreneurial spirit as the catalyst for sustainable success and profitable business operation. Objectives * To profit * Sell about 2500-4000 liters a day * Build customer loyalty through good service and clean products * Increase sales by 10% annually * To offer the lowest possible price in the gasoline market Organizational Chart C. Product Category Review General description * Premium Gasoline “Flash Gas”- 93 Octane reading with engine cleaning additives * Unleaded Gasoline “Speedy Max”- 93 Octane Rating Lead-Free * Regular Gasoline- 83 Octane Rating * Biodiesel Fuel * Lubricants Sale Trends Gasoline is a necessity and it should be available at anytime of the day. Gasoline is one of the factors why the society goes on and the market prices rises. Gasoline makes everything faster than the way it is. People usually gas up before a price hike for them to save cash. Distribution Profile Filoil caters to both private and public cars. Filoil-...
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...Process does not stop after absorption of crude oil. There are lots of steps such as extraction the crude oil into category such as petrol and etc. Let’s look at measurement of crude oil. Not like other substances crude oil is measured in barrels. In the 19 century, it was stored in the wooden barrel in developed countries. In present, one barrel equals 42 US gallons, or 159 liters. Also, it is measured in ton scale. We clearly know that number of barrels contained in each ton varies depending on the type and density of each crude (average-7.33 barrels per each ton). Extraction procedure of petrol Petroleum is extracted crude oil which was absorbed from oil wells found in oil field. There some technologies to extract the petroleum but few of them are improved technologies such as fisher-Tropsch process. With higher demand for hydrocarbons miscellaneous method are used in petroleum exploration and development to optimize the recovery of oil and gas known as enhanced oil recovery i.e. EOR. Primary methods are exploited to step up oil that was brought to surface by underground pressure, and can generally recover about 20% of the oil present. The natural pressure is provided by several different sources where it is provided an underlying water layer is called a water drive reservoir and where it is from the gas cap above it is called gas drive. Since...
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...PROJECT OF MANAGERIAL ECONOMICS ON PETROLEUM INDUSTRY IN INDIA (OLIGOPOLY MARKET STRUCTURE) (TERM PAPER) SUBMITTED TO:-MOHD. IRFAN COMPILED BY:- ISHAN GUPTA (FS 21) Contents INTRODUCTION 4 Petroleum Industry in India 5 WHY OLIGOPOLY MARKET? 6 JUSTIFICATION 9 WHICH AMONG THE THREE IS 11 DOMINANT? 11 INTRODUCTION PETROLEUM INDUSTRY is considered to be the backbone of an economy because this is the main source of energy till date. Any economy around the world would fail to proceed a single step in the absence of petroleum industry. Thus, before using this energy source, the crude petroleum is required to be refined in the petroleum refineries for extracting various fractions for energy generation namely, Petrol, kerosene, Natural gas, Asphalt and many more. The most important part of petroleum industry is the petroleum refining industry. Petroleum is basically a non-renewable form of fuel which is subject to extinction from the world after a certain point of time. Petroleum industry is huge and a slight effect on it has a major impact on the economy all over the globe. The resource is scarce and DEMAND is very high thus ultimately results in price hike. Price of petroleum is determined by DEMAND-SUPPLY...
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...Chapter 1 INTRODUCTION TO THE STUDY This chapter includes five parts namely; (1) Background of the Study, (2) Statement of the Problem, (3) Significance of the Study, (4) Definition of Terms, and (5) Scope and Delimitation of the Study. Part One, Background of the Study, justifies the needs for the investigation, and discusses the importance of selecting the problem. Part Two, Statement of the Problem, state clear and sharply defined statement relating to the actual problems of the study. Part Three, Significance of the Study, specifies the benefits that maybe derived from the findings. Part Four, Definition of Terms, presents the definition of important terms, conceptually and operationally used in the study. Part Five, Scope and Delimitation of the Study, sets the limits and scope of the study. Background of the Study Libraries had been the main source of all sorts of information since the day when books were made. It can be accessed by everyone who uses books, magazines and other archives for research and recreation purposes. Today, libraries are seldom frequented by students due to the emergence of the so called internet. The internet caters to the various needs of students from books, research papers and articles that would provide them information to online games, social networking sites and chatrooms where they can find friends and interact with other online users. There is more than 150 billion...
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...The rise of gas prices over the years has put financial strain on people all round the world. Last year, the average gas price was at $3.60, breaking records.. A decreased consumption should ideally lead to a fall in the price of a commodity, but with gas prices, it has been the opposite. Although there’s been a decrease in the consumption of gas in US, emerging markets such as China and India have pushed the demand for crude oil. The fact that these two countries account for approximately 35% of the global population explains the reason for high demand for gasoline in these countries. According to statistics, China consumes about 9,000,000 barrels of gasoline every day. India, on the other hand, needs 3,182,000 barrels on a daily basis to meet its energy needs. Although these countries do not export crude oil to US, the demand they create in the global oil market increases the likelihood of a price hike, notably by the Organization of the Petroleum Exporting Countries. The good news for Americans is that the decline in oil prices may continue in 2013, and the prices will not go as high as they had in the last year. Irrespective of the fluctuations in the price of gas prices, we need to remember that the oil reserves around the world are non-renewable. To ensure that these reserves are not completely depleted, attempts should be made to develop alternative sources of energy. Signing off, we hope that this article helps you in understanding the underlying causes of high gas...
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...Since the 1973 oil price shock, the history and behaviour of the Organization of Petroleum Exporting Countries (OPEC) have received considerable attention both in the academic literature and in the media. Many conflicting theoretical and empirical interpretations about the nature of OPEC and its influence on world oil markets have been proposed. The debate is not centred on whether OPEC restricts output, but the reasons behind these restrictions. Others explain production cuts in the 1970s in terms of the transfer of property rights from international oil companies to governments (Johany, 1980; Mead, 1979). Others explain output restrictions in terms of coordinated actions of OPEC members. Within the literature, OPEC behaviour ranges from classic textbook cartel to two block cartel (Hnyilicza and Pindyck, 1976), to clumsy cartel (Adelman, 1980), to dominant firm (Salant, 1976; Mabro, 1991), to loosely co-operating oligopoly, to residual firm monopolist (Adelman, 1982) and most recently to bureaucratic cartel (Smith, 2005). Others have suggested that OPEC oscillates between various positions but always acts as a vacillating federation of producers (see for instance Adelman, 1982; Smith, 2005). The existing empirical evidence has not helped narrow these different views. Griffin’s (1985) observation in the mid-1980s that the empirical studies tend to “reach onto the shelf of economic models to select one, to validate its choice by pointing to selected events not inconsistent...
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...Kulkarni to join LK on Janchetna yatra | The Asian Age http://www.asianage.com/india/kulkarni-join-lk-janchetna-yatra-029 5:50 PM, Saturday Nov 19, 2011 Deccan Chronicle Andhrabhoomi Financial Chronicle Login Follow Us Horoscope Search Home Home India Metros International Business Opinion Sports Entertainment Share Life & Style Newsmakers Books E-Paper Videos News in Motion No directive to rollback petrol price hike Kulkarni to join LK on Janchetna yatra Nov 19, 2011 | Age Corespondent | New Delhi Share Like Sign Up to see what your friends like. Senior BJP leader L.K. Advani’s former aide Sudheendra Kulkarni, who along with party’s two former MPs got bail in the cash-for-vote scam, is likely to join Mr Advani during the last leg of his Janchetna yatra. Sources disclosed Mr Advani called up Mr Kulkarni after the latter walked out of Tihar Jail on Thursday evening. BJP chief Nitin Gadkari, it was learnt, also spoke to Mr Kulkarni and party leaders on Thursday. It could be mentioned that Mr Kulkarni had snapped ties with the BJP in 2009 over “serious ideological differences.” While congratulating his former aide, Mr Advani, it was learnt, invited him to join his yatra. The Delhi high court earlier this week granted bail to Mr Kulkarni along with BJP’s former MPs, Faggan Singh Kulaste and Mahavir Bhagora in the cash for vote scam. The court also granted anticipatory bail to party’s sitting MP Ashok...
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...problem The price of gasoline has varied widely from a current low of $3.98 a gallon to a high of $4.21 approximately ten weeks ago. In order to appreciate the reason for this fluctuation it is important to understand that the price of gas, like other commodities, is determined by the relationship of supply and demand. Since gasoline is a relatively inelastic product, the price alone does not have much bearing on the demand. Rather, other non-price determinants such as personal income and product availability play a bigger role in the demand for gas. The recent drop in prices has been largely attributed to a weakening of global demand; particularly the slowdown in Europe’s manufacturing industry. The unemployment rate in seventeen countries that use the euro has increased over the past few months and the United States has added fewer than expected jobs to the economy. These factors have led to a reduction in personal income thereby reducing the overall demand for gasoline. On the supply side of the equation, price increases earlier in the year were caused by supply interruptions in South Sudan, Syria, Yemen and the North Sea. This reduction in supply coupled with the tightening of sanctions in Iran reduced the number of petroleum sellers in the market causing a price hike at the pump. Consumer expectations of further supply interruptions led to the sustained higher prices. Being an inelastic product (few substitutes available), the actual retail price of gas did little...
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...Information Administration expects growth to accelerate over the next two years reaching 88.8 million barrels per day in 2012 and nearly 89.7 million barrels per day in 2013. The EIA projects consumption in the Organization for Economic Cooperation and Development (OECD) countries to be nearly flat in 2012 and 2013. Growth is concentrated in the non-OECD countries, including China, Brazil, and the Middle East with world gains of about 0.8 million barrels per day expected in 2012 and another 0.9 million barrels per day in 2013. Price Elasticity of Demand for Gasoline A meta-analysis by Molly Espey, published in Energy Journal. Espey examined 101 different studies and found that in the short-run (defined as 1 year or less), the average price-elasticity of demand for gasoline is -0.26. That is, a 10% hike in the price of gasoline lowers quantity demanded by 2.6%. In the long-run (defined as longer than 1 year), the price elasticity of demand is -0.58; a 10% hike in gasoline causes quantity demanded to decline by 5.8% in the long run. It's important to note that the realized elasticity’s depend on factors such as...
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