Rise&impact of Crude Oil Price in India

The study is an attempt to understand the causes for rise in crude oil prices and the factors that influence it. As a matter of fact, crude oil is the most essential commodity and also the most traded product which influences an economy. Petroleum known as „liquid gold‟ is an extract of crude oil and is compared to gold because it is an exhaustible resource and also of its economic value. The objective of the study is to study the change in prices of crude oil and its effect on the environment of business. Crude oil being very indispensable it greatly affects the prices of commodities , particularly the transport sector. In India the change in the price of crude oil has been a major cause for the rise in inflation rate as it greatly affects the prices of essential commodities and adversely affecting the common man.The OPEC organization is composed of 12 nations possess over 60% of world reserves of crude that work as a cartel and to an extent they have a monopolistic approach towards the regularizationacontrolling of crude oil prices across the world.