ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Oil PricesSubscribe to Oil Prices

Impact of State Intervention in Oil Pricing on Stock Market Volatility

The Indian economy deregulated its oil price regime and moved from state-administered to market-linked pricing. This study examines the impact of deregulation on volatility transmission between international oil prices and Indian stock markets. The findings show that due to continual interventions in the form of taxation changes and price freeze during elections, not only did the short-term spillover of oil prices on stock markets strengthen, but the long-term spillover also continues to remain, despite oil price deregulation. This implies that after moving to market-determined pricing, there should be no tinkering with the oil-pricing mechanism by policymakers to ensure the desired stability in stock markets.

Politics of Inflammatory Oil Price Rise

Convoluted petrol and diesel taxes only fill central coffers at the expense of consumers and states.

Beginning of an End for Indexation?

The liquefied natural gas market has been in the state of oversupply since late 2014, resulting in low gas prices. This has prompted LNG traders to reconfigure the market dynamics and the contractual framework between them. Consequently, there is a visible shift from a rigid oil-linked gas price to a flexible gas-on-gas price competition, which has contributed to increased global LNG demand.

Impact of Increase in Oil Prices on Inflation and Output in India

This paper attempts to study the transmission mechanism of an increase in petroleum prices on the prices of other commodities and output in India. The paper also examines the nature and the extent of 'feedback' in such a transmission mechanism and obtains evidence of bidirectional causality between oil and non-oil inflation in India.
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