Petroleum Pricing - Essay Example

Only on StudentShare

Extract of sample
Petroleum Pricing

Below we will analyze this phenomenon in light of both price elasticity of demand and also the cross price elasticity of demand.
Price elasticity of demand is the measure of percentage change in prices on the percentage change in quantity demanded of a certain product. 1 Price Elasticity of demand is a negative ratio as there is a negative relation between price and quantity demanded. In simple terms, common sense suggests that if price of certain product increases then people will tend to buy less of that product.
One of the determinants of the price elasticity of demand is the number and the closeness of substitute products; analyzing the substitutes available for petrol, we have compressed natural gas, bio fuels which include hydrogen gas, liquefied natural gas (LNG) and liquefied petroleum gas (LPG)2 etc. All these can be used for transportation. But the problem that so arises is that these fuels need to be compatible with the cars that run on the road and the particular country's government and other regulations should also be supporting the alternative forms of transport. ...Show more


Elasticity in simple terms is defined as the change in one variable due to the change in another. Since, when we operate in a system it is not unusual that things affect one another. Therefore, in economics we see that simple demand and supply of products are affected by prices, change in prices of other goods etc.
Author : valeriereichel
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Petroleum Pricing"
with a personal 20% discount.
Grab the best paper

Related Essays

Examine a published research report which has been conducted about police management or management in a related field profession
Best Value service delivery is a noble management theory to consider and pursue especially in public service delivery. However, there is the need to explore avenues of implementation, building on existing mechanisms, and exploring the creativity of the professionals.
9 pages (2250 words) Essay
Petroleum Development of Oman
The first economic find of oil was made in 1962, and the first consignment of oil was exported in 1967. PDO has been working in a close alliance with the Omani Government and has the ardent support of his Excellency Sultan Qaboos Bin Said Al Said. PDO and Ministry of Oil and Gas (MOG) have been toiling hard for the past decade or so for the development Omani human resource and a number of technical and vocational ventures have been launched that specifically aim at the development of lower and middle level manpower within the company and in the country at large.
13 pages (3250 words) Assignment
British Petroleum
It need be noted, however, that the aforementioned history is far from a proud one insofar as BP's activities were closely linked to British colonialism and, indeed, were sustained and supported by the imperialist framework. What this means is that BP received concessions not available to any other non-British company, including national ones, and obtained drilling and exploitation licenses which were even denied to local companies.
4 pages (1000 words) Case Study
Petroleum Technology
Exxon Mobil, the world's largest publicly traded company, is into oil and gas exploration (Wikimedia Foundation, Inc.). In 2005 it announced that it was able to develop an "optimization process that consistently reduces the time required to drill oil and gas wells by up to 35%" (AZo Network).
1 pages (250 words) Essay
Road Pricing
This charge was implemented to curb the road and traffic congestion by charging the amount of externality directly to vehicle who create these externalities. As a sign of traffic congestion in Central London, recent survey show that average speed of Vehicles on the main road in Central London has dropped from 14 mph to around 9 mph.
1 pages (250 words) Essay
The effect French Revolution had on the main events in European history in the 19th century
There are many factors that caused the revolution. There was the Enlightenment, with figures such as Rousseau and Voltaire, that fueled the revolution on an ideological level. There was the ineptitude of the
10 pages (2500 words) Essay
Organization of the Petroleum Exporting Countries
Additionally, through working towards a unification strategy, OPEC’s objective is to balance economic stability against consistent returns for investors in the petroleum industry. OPEC was created at
4 pages (1000 words) Essay
Sainsbury is one of the online retail businesses that are quickly gaining popularity not only in the UK, but across the rest of the world as well. Online retailing is a fairly new kind of business that sprung up with the explosion
3 pages (750 words) Case Study
Petroleum Economic and Oil field management
The future expectations with respect to demand and supply for oil will influence prices. Supply and demand are balanced by responses to the current price movements where complexity in the evolution of underlying expectations is likely to influence prices in the
6 pages (1500 words) Essay
Mini Project 2
or instance, family planning controls the output of births hence promoting a balance between the supply and the demand of water (Erikson & Globescan, 2010). Water scarcity and climate change correspond. Drought leads to water shortage whereas flooding undermines the quality of
1 pages (250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email