International Journal of Science, Engineering and TechnologyAuthors: Assistant Professor P. Anandhi, Assistant Professor S.Gunasekaran, Assistant Professor S.Kavithanjali, Assistant Professor M. Srividya
Abstract: India has emerged as the third base-prime trader of crude oil globally, superior previous benchmarks in 2020 and fulfilling completed 84% of its oil needs done imports. This investigates the reasons behind the sharp increases in petrol and diesel prices and their subsequent impact on India's economy. The rapid escalation in crude oil prices exerts significant pressure on the economy, driven by factors such as fluctuating supply and demand, OPEC policies, high government taxes on petroleum products, and the rupee-dollar exchange rate. To address these issues, this paper employs the Robust Fuzzy Regression Estimator (RFRE) to identify and mitigate irregular data points, thereby refining the analysis of price trends. The study finds that rising energy prices contribute to increased manufacturing costs, lower GDP growth, a widening current account deficit (CAD), tax variations, and heightened costs for transportation and essential goods. Contrary to the belief that global crude oil prices are the primary driver of domestic fuel prices, the analysis concludes that the economic policies of both central and state governments play a more critical role. This research provides valuable insights into the complexities of fuel pricing and offers a clearer understanding of the statistical economic implications of energy price volatility.
