Effect of Electric Cars on Oil Price and Demand

 

First let's understand what oil marketing companies are that OMC, the job of an oil marketing company is to buy crude oil ie crude oil, then extract it from a refining company, to extract oil from it, diesel, etc. and sell this oil to the dealer Indian Oil in India Corporation Limited Bharat Petroleum CorporationLtd, Hindustan Petrol Corporation Ltd, has more than 90% market share in India.

 

How is the price of oil calculated and why is it so expensive? 

 

The first step is to buy crude oil, that is, to buy crude oil, which is mostly brought from one country to another and in our India also, oil is brought to India by ship, the cost of this is also called cost and freight. Then import Charges are also added to it. Oil transported and brought to India, its insurance Charges, ocean Losses, Port Fees, all this comes under import charges, this which has come to your India, in which the Indian government levies custom duty, then it is sent to the refinery where it is processed. After taking out diesel, petrol, etc. from him. It is known that the charge incurred in refining crude oil is also called Refinery transfer price, whenever it is refined, oil marketing companies sell them to dealers. The cost of digesting the dealer is also called inland Freight. From buying oil to selling it to the dealer, all the expenses open. The total expenditure made by it is also called the Total desire price and the price at which the oil marketing company sends it to the dealers is also called the Deposit price, after that, the Government of India imposes exercise duty on it and the state government imposes VAT on it and on. The commission of the most dealer as per liters also gets added to it. Then after adding these expenses and profits, the price at which we get oil is called retail price.

There are always two Antonyms things going on in the economy and it is considered that demand and supply. As crude oil is a natural thing. As we know that oil is a natural thing and it is extracted from underground, so the supply of that thing is always more and the demand is more than that because our car is fueled by petrol or other vehicles to run trucks and other cars. As Requires diesel which is made from refinery oil.

 

How oil price describes the economy?

Crude oil consumption is expected to be slightly over 100 million barrels per day (b/d) by the end of 2019, compared to around 86 million barrels/day in 2010. There has been an average increase of 1.5 million barrels/day every year since 2010. Simple math would suggest the estimated consumption to be around 147 million b/d by 2050. But taking into account the policies of governments and the targets for renewable energy consumption, switching to electric vehicles, increasing energy efficiency, etc., 147 million b/d should be very little. right? but how much?

And especially when we are talking about electric vehicles, which becomes especially important when more than 20 million people, that is, 22% of the customers, always ask about the vehicle in the next 30 years. Can estimate that the vehicles will increase and how big it is, it is not sure but it should be maybe larger than 3% because populations are growing at around the same rate

If it continues like this, then by 2030 the price of oil will decrease and the price of electricity will increase, and if by 2050, then it may be that oil may not be in demand as much as it is today and will come to an end. But that will not come because it is an energetic source and it is also used for many other things.