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| Topic: |
Business
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| Number of pages / Number of words: |
11 / 2815 |
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Of course this is a noble cause if done for national interest, but the question is can we really afford to stay unaffected from the rising prices? Moreover, any international observer who is conversant with world economics would like to ponder over the fact that in India Administered Pricing Mechanism (APM ) governing pricing has long been dismantled allowing market forces to take over, but Indian government is still controlling decisions pertaining to pricing!
OIL PRICING MECHANISM IN INDIA
India is currently practicing the import parity principle to determine oil prices...
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In fact India is now all set to move beyond Import Parity Pricing to Trade Parity Pricing , which is nothing but a weighted average of 80:20 between import parity and export pricing. However, APM which was in practice before being dismantled in 2002, still influences pricing in the oil sector. The concept of APM originated in 1977 under the Oil Pricing Committee (OPC ) and revolved around cost plus pricing for the producing companies and cross-subsidization for the consumers...
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