IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/25905.html
   My bibliography  Save this paper

Petroleum Pricing in India: Transition from APM to MDPM

Author

Listed:
  • Bandyopadhyay, Kaushik Ranjan

Abstract

Given the paramount importance of petroleum for the Indian economy and its increasing import dependence on this front, domestic pricing of crude oil and petroleum products assumes enormous significance for the country. The pricing regime not only influences the cost of energy for the economy as a whole but also has significant implications on economic growth and welfare. A close look at the pricing regime in the petroleum sector in India reveals that for nearly two and half decades (from 1975 to 1997) the petroleum sector in the country was operating in a state of complete protection under Administered Pricing Mechanism (APM). It is only in 1998 that the sector embarked on a gradual transition to a regime of deregulation and open competition. The paper provides an in-depth examination of the domestic pricing regime for crude and petroleum products in India under APM and in the post-APM era.

Suggested Citation

  • Bandyopadhyay, Kaushik Ranjan, 2009. "Petroleum Pricing in India: Transition from APM to MDPM," MPRA Paper 25905, University Library of Munich, Germany, revised 2010.
    • Handle: RePEc:pra:mprapa:25905
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/25905/1/MPRA_paper_25905.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gangopadhyay, Shubhashis & Ramaswami, Bharat & Wadhwa, Wilima, 2005. "Reducing subsidies on household fuels in India: how will it affect the poor?," Energy Policy, Elsevier, vol. 33(18), pages 2326-2336, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yanxiang & Ali Almazrooei, Shaikha & Kapsalyamova, Zhanna & Diabat, Ali & Tsai, I-Tsung, 2016. "Utility subsidy reform in Abu Dhabi: A review and a Computable General Equilibrium analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1352-1362.
    2. Shan Zhou & Douglas S. Noonan, 2019. "Justice Implications of Clean Energy Policies and Programs in the United States: A Theoretical and Empirical Exploration," Sustainability, MDPI, vol. 11(3), pages 1-20, February.
    3. Iuliia Ogarenko & Klaus Hubacek, 2013. "Eliminating Indirect Energy Subsidies in Ukraine: Estimation of Environmental and Socioeconomic Effects Using Input–Output Modeling," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-27, December.
    4. Balachandra, P. & Kristle Nathan, Hippu Salk & Reddy, B. Sudhakara, 2010. "Commercialization of sustainable energy technologies," Renewable Energy, Elsevier, vol. 35(8), pages 1842-1851.
    5. International Monetary Fund, 2008. "India: Selected Issues," IMF Staff Country Reports 2008/052, International Monetary Fund.
    6. Khalid, Syed Adnan & Salman, Verda, 2020. "“Welfare impact of electricity subsidy reforms in Pakistan: A micro model study”," Energy Policy, Elsevier, vol. 137(C).
    7. Yawale, Satish Kumar & Hanaoka, Tatsuya & Kapshe, Manmohan & Pandey, Rahul, 2023. "End-use energy projections: Future regional disparity and energy poverty at the household level in rural and urban areas of India," Energy Policy, Elsevier, vol. 182(C).
    8. Rajesh Kalli & Pradyot Ranjan Jena & Shunsuke Managi, 2022. "Subsidized LPG Scheme and the Shift to Cleaner Household Energy Use: Evidence from a Tribal Community of Eastern India," Sustainability, MDPI, vol. 14(4), pages 1-16, February.
    9. Solaymani, Saeed & Kari, Fatimah, 2014. "Impacts of energy subsidy reform on the Malaysian economy and transportation sector," Energy Policy, Elsevier, vol. 70(C), pages 115-125.
    10. Rehman, I.H. & Kar, Abhishek & Banerjee, Manjushree & Kumar, Preeth & Shardul, Martand & Mohanty, Jeevan & Hossain, Ijaz, 2012. "Understanding the political economy and key drivers of energy access in addressing national energy access priorities and policies," Energy Policy, Elsevier, vol. 47(S1), pages 27-37.
    11. Bazilian, Morgan & Onyeji, Ijeoma, 2012. "Fossil fuel subsidy removal and inadequate public power supply: Implications for businesses," Energy Policy, Elsevier, vol. 45(C), pages 1-5.
    12. B. Sudhkara Reddy & Hippu Salk Kristle Nathan, 2010. "Energy infrastructure for a high humane and low corbon future," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2010-007, Indira Gandhi Institute of Development Research, Mumbai, India.
    13. van Ruijven, Bas J. & van Vuuren, Detlef P. & de Vries, Bert J.M. & Isaac, Morna & van der Sluijs, Jeroen P. & Lucas, Paul L. & Balachandra, P., 2011. "Model projections for household energy use in India," Energy Policy, Elsevier, vol. 39(12), pages 7747-7761.
    14. Aryanpur, Vahid & Fattahi, Mahshid & Mamipour, Siab & Ghahremani, Mahsa & Gallachóir, Brian Ó & Bazilian, Morgan D. & Glynn, James, 2022. "How energy subsidy reform can drive the Iranian power sector towards a low-carbon future," Energy Policy, Elsevier, vol. 169(C).
    15. Lin, Boqiang & Jiang, Zhujun, 2011. "Estimates of energy subsidies in China and impact of energy subsidy reform," Energy Economics, Elsevier, vol. 33(2), pages 273-283, March.
    16. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2015. "Public financing of solar lanterns versus subsidizing kerosene for domestic lighting in India: A feasibility assessment," Renewable Energy, Elsevier, vol. 80(C), pages 564-572.
    17. Fondja Wandji, Yris D., 2013. "Energy consumption and economic growth: Evidence from Cameroon," Energy Policy, Elsevier, vol. 61(C), pages 1295-1304.
    18. Han Phoumin & Shigeru Kimura, 2017. "Institutional Policy and Economic Impacts of Energy Subsidies Removal in East Asia," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2015-rpr-23 edited by Han Phoumin & Shigeru Kimura, October.
    19. Swain, Swadhina Shikha & Mishra, Pulak, 2021. "How does cleaner energy transition influence standard of living and natural resources conservation? A study of households’ perceptions in rural Odisha, India," Energy, Elsevier, vol. 215(PB).
    20. Yawale, Satish Kumar & Hanaoka, Tatsuya & Kapshe, Manmohan, 2021. "Development of energy balance table for rural and urban households and evaluation of energy consumption in Indian states," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).

    More about this item

    Keywords

    crude oil; petroleum products; pricing;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:25905. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.