Analysis with Shaurya

Even after several decades of First Oil Crisis and a lot of technological advancement … an increase in petrol and diesel prices still effects balance of payments of several nations and a common man's budget too. “Economics is study about how to meet unlimited need with scarce resources” – Laurence J Peter. This statement holds a lot of significance. People make a lot of money by manipulating prices (meeting their unlimited needs) via artificially adjusting demand and supply (scarce resources) be it stocks, onions or crude oil… etc. In this article we will see how demand and supply of crude oil were adjusted so as to control prices.   We can consider Petrol and Diesel as a relatively inelastic market in short run, which means that there are very few substitutes available so that you can shift to that substitute if prices for petrol increase. As petrol and diesel both are obtained from crude oil, so it becomes important to understand about what happened to crude oil pr