Why has the benefit of crude oil price dip not been passed on to consumers
Crude oil price dip benefit not passed on to consumers: Congress leader Jairam Ramesh
- Government Policies: One reason the benefit of the crude oil price dip may not have been passed on to consumers is due to government policies. Governments often levy high taxes on petroleum products, which reduces the impact of the price decline.
- Oil Marketing Companies: Oil marketing companies play a role in determining fuel prices. They may choose to absorb the benefit or offset it by adjusting prices of other petroleum products to maintain their profit margins.
- Refining and Distribution Costs: There are various costs involved in refining and distributing crude oil products. These costs can reduce the overall benefit derived from the price dip, making it difficult for companies to pass on the full savings to consumers.
- Global Market Dynamics: Crude oil prices are influenced by global market dynamics, including geopolitical tensions and supply-demand dynamics. Even if oil prices decrease, other factors such as exchange rates or global demand fluctuations can impact the final consumer prices.
- Timing and Frequency: The timing and frequency of price adjustments are usually decided by the government or regulatory authorities. Even if crude oil prices dip, the benefits may not reach consumers immediately due to these factors.
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a year ago