Commercial LPG cylinder prices have seen an increase, impacting businesses.
The government has imposed a 25% cap on the hike in Aviation Turbine Fuel (ATF) prices for domestic flights.
Oil Marketing Companies (OMCs) are currently experiencing an under-recovery of ₹380 per LPG cylinder.
These measures reflect government intervention in fuel pricing to balance market dynamics and economic stability.
Under-recovery occurs when a company sells a product or service at a price lower than its cost of production or procurement. In the context of fuel, OMCs incur under-recoveries when the government mandates selling fuel (like LPG or kerosene) below the market price, often to provide subsidies or control inflation. This gap between the cost and the selling price is borne by the OMCs, potentially impacting their financial health.
Simple Analogy: Imagine buying a pen for ₹10 but being forced to sell it for ₹7. The ₹3 difference is your 'under-recovery' or loss on that sale.
Fuel price changes directly influence the Wholesale Price Index (WPI) and Consumer Price Index (CPI), impacting overall inflation.
Under-recoveries often necessitate government compensation to OMCs, impacting the fiscal deficit and subsidy burden.
ATF prices are a major component of airline operating costs, influencing airfare, profitability, and sector growth.
Government intervention in fuel pricing is a key aspect of energy policy, balancing market forces with social and economic objectives.
Public sector undertakings responsible for refining, distributing, and marketing petroleum products in India. Examples include Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL).
The nodal ministry responsible for the exploration, production, refining, distribution, and pricing of petroleum and natural gas in India.
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Government Budgeting. Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
General Awareness: Indian Economy, Current Affairs.
General/Financial Awareness: Indian Economy, Government Schemes, Current Affairs.
General Awareness: Indian Economy, Current Affairs.
General Knowledge: Current Events, Indian Economy.
With reference to 'Stand Up India Scheme', which of the following statements is/are correct? 1. Its purpose is to promote entrepreneurship among SC/ST and women entrepreneurs. 2. It provides for refinance through SIDBI. Select the correct answer using the code given below.
Answer: Both 1 and 2
Which one of the following is a purpose of 'UDAY', a scheme of the Government?
Answer: Providing for financial turnaround and revival of power distribution companies
Pradhan Mantri MUDRA Yojana is aimed at
Answer: bringing the small entrepreneurs into formal financial system
High for economic policy and current affairs, especially for UPSC and Banking exams.
The difference between the cost of production/procurement and the government-mandated selling price of a product, leading to a loss for the seller.
A specialized type of petroleum-based fuel used to power aircraft.
Public sector enterprises involved in the marketing and distribution of petroleum products.