A STUDY ON FACTORS INFLUENCE TOWARDS RISE IN FUEL PRICE

HIKE WITH REFERENCE TO KARAIKUDI TOWN

Project submitted to the Alagappa University, karaikudi in partial fulfillment of the requirements
for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

M.SPERGEON
(Reg.No.0118153057)
K.VEERA GOBI
(Reg.No.0118153058)
Under the Supervision and Guidance of

DR.M.THIAGARAJAN. MA., MBA. MPHIL., PH.D.,

DEPARTMENT OF BUSINESS ADMINISTRATION

ALAGAPPA GOVERNMENT ARTS COLLEGE

KARAIKUDI - 630 003

April - 2021
DR.M.THIAGARAJAN. MA., MBA. MPHIL., PH.D.,

Head of Business Administration,

Alagappa Government Arts College,

Karaikudi-630 003.

__________________________________________________________
CERTIFICATE
This is to certify that the project entitled A STUDY ON FACTORS INFLUENCE TOWARDS
RISE IN FUEL PRICE HIKE WITH REFERENCE TO KARAIKUDI TOWN submitted to
Alagappa University,in partial fulfillment of the requirement for the award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION is a record of original research work done
by M.SPERGEON. & K.VEERA GOBI. During the period 2018-2020 of his study in the
DEPARTMENT OF BUSINESS ADMINISTRATION, ALAGAPPA GOVERNMENT
ARTS COLLEGE, KARAIKUDI under my supervision and guidance and the project has not
formed the basis for the award of any Degree/Diploma/Associateship/ Fellowship or other similar
title to any candidate of any University.

Place: Karaikudi Guide and Supervisor

DR.M.THIAGARAJAN

Date:

Forwarded by
HOD OF BBA

INTERNAL EXAMINER EXTERNAL EXAMINER

 DECLARATION

I M.SPERGEON. & K.VEERA GOBI hereby declare that the project entitled “A

STUDY ON FACTORS INFLUENCE TOWARDS RISE IN FUEL PRICE HIKE WITH

REFERENCE TO KARAIKUDI TOWN” has been my original work and the project has not

formed the basis for the award of any degree, diploma, fellowship or other similar titles.

Place: Karaikudi

Date: Signature of the candidate

M.SPERGEON.

K.VEERA GOBI
 ACKNOWLEDGEMENT

Any organized and systematic work calls for the co-operation and co-ordination of a team
of people. My thesis is no exception to this. Hence, these pages find the space for thanking all
those who have directly and indirectly contributed to the completion of this work in a successful
manner.

I whole heartedly dedicate my gratitude to the “Almighty” for his blessing showered upon
me in the successful performance of the project.

I pay my tributes to (late) Dr. RM.ALAGAPPA CHETTIAR, the great founder of this
institution.

I am immensely in debited to Dr.M.THIAGARAJAN MBA.,M.PHIL., Ph.D. his active

support and continue guidance in successful completion of his project work.

I thank our respected principal Dr. K.S.MEENA M.Sc., M.Phil., Ph.D. for his moral
support.

I express my sincere gratitude and heartfelt thanks to Dr.M.THIAGARAJAN

MBA.,M.PHIL., Ph.D. Assistant Professor and Head of the Department of Business
Administration, Alagappa Govt. Arts College, Karaikudi for his encouragement throughout the
Period of my study.

It is my duty to thank all the members teaching staff of the Department of Business
Administration for the help extended by them.

I cordially thank my beloved PARENTS & FRIENDS without whose effort and support,
project could not have been submitted.

M. SPERGEON

K. VEERA GOBI
 CONTENTS

CHAPTER PAGE
TITLE
NO NO

I INTRODUCTION 1-3

II OBJECTIVES 4

III RESEARCH METHODOLOGY 5-7

IV DATA ANALYSIS AND INTERPRETATION 8-26

SUMMARY OF FINDINGS, SUGGESTIONS AND

V 27-28
CONCLUSION

BIBLIOGRAPHY 29

APPENDIX
 LIST OF TABLES AND FIGURES

S.NO DESCRIPTION PAGE.NO

Gender With Classification

4..1 9

4..2 Age With Classification 10

4..3 Occupation With Classification 11

4..4 Annual Income 12

4..5 Are You Own Automobile? 13

14
Which Type Of Vehicle, Are You Use?
4..6

What's Your Opinion About Factors Influence On Fuel Price

4..7 Hike? 15

Ranking The Factors Influence Fuel Price

4..8 16

Are You Agree Increase Price Of Crude Oil In Global

4.9 Market Influences Fuel Price Hike ? 17

Are You Feel That Impact Of Tax Structure On Fuel

4.10 18
Price Hike ?
4.11 Which Type Of Tax Influence On Fuel Price Hike? 19

Are You Satisfy, The Tax Charge By The Govt. On Fuel Price
4.12 Hike? 20

Ranking The Tax Charged By Government

4.13 21

4.14 22
Are You Feel That Reduce The Tax Impact On Decrease The
Fuel Price?

Are You Agree That Dealers Commission Influence On Fuel

4.15 Price Hike? 23

4.16 How Do You Feel About The Fuel Price Hike? 24

Whether The Fuel Price Hike Are Affect Your Socio -

4.17 Economic Life. 25

What Is Your Alternative Mode Of Transportation Instead Of

4.18 Using Your Vehicle? 26
CHAPTER 1
 CHAPTER 1

1.1 INTRODUCTION

People are pretty sensitive about fuel prices as they are directly linked to the commodities.
Earlier these prices were changed fortnightly based on the average price of crude oil and foreign
exchange rate of the preceding 15 days. But from the beginning of 16th June last year, all petrol
pumps across the country have been changing their petrol and diesel prices each day based on
market prices of crude oil (International ) and foreign exchange rates. But in many instances, the
old pricing systems have failed to change proportionally with the rise and fall in international
crude oil prices due to political intervention. So in order to find the need for shifting to daily fuel
price change model, one has to understand the dynamics of petrol pricing in India..

1.2 FUEL

 A fuel is any material that can be made to react with other substances so that it releases
energy as heat energy or to be used for work. The concept was originally applied solely to
those materials capable of releasing chemical energy but has since also been applied to
other sources of heat energy such as nuclear energy (via nuclear fission and nuclear
fusion).

 The heat energy released by reactions of fuels is converted into mechanical energy via
a heat engine. Other times the heat itself is valued for warmth, cooking, or industrial
processes, as well as the illumination that comes with combustion. Fuels are also used in
the cells of organisms in a process known as cellular respiration, where
organic molecules are oxidized to release usable energy. Hydrocarbons and related
oxygen-containing molecules are by far the most common source of fuel used by humans,
but other substances, including radioactive metals, are also utilized.

 Fuels are contrasted with other substances or devices storing potential energy, such as those
that directly release electrical energy (such as batteries and capacitors) or mechanical
energy (such as flywheels, springs, compressed air, or water in a reservoir).
1.3 HISTORY

 The conception and subsequent development of the motor car in the past 100 years has
been a significant contributing factor to the tremendous economic growth of the
industrialized world.
 The development of the car is primarily due to the invention of the internal combustion
engine. But also to the fact that volatile fuels based on hydrocarbons are particularly
suitable for running car engines and that the oil industry has been able to produce these
fuels in adequate, economic quantities and with constantly improving qualities.
 From 1900 to 1920, there was an increase in demand for petrol and it ceased to be just
a by-product and the more volatile fractions of kerosene were diverted to petrol.
 During the early 20th Century the oil companies were producing petrol as a simple
distillate from petroleum, but automotive engines were rapidly being improved and
their fuels needed to improve with them.
 From the 1970's until 1990 petrol’s were slowly changed as lead began to be phased
out, lead levels plummeted and octane ratings initially decreased, and then remained
2 to 7 numbers lower.

1.4 INTERFERENCE OF POLITICS IN PETROL PRICING

Though, the union government deregulated petrol price in 2010 and diesel price in 2014,
which allowed oil marketing companies to decide on the prices of fuel, according to the change
in international oil prices based on the currency exchange rate. But, the state owned oil marketing
firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp weren’t allowed
to raise prices in the state or national election in order to avoid people’s anger. But to compensate
the oil companies, the government allowed them to charge higher prices even when international
oil rates have fallen.
1.5 INDIA’S DEPENDENCY ON PETROLEUM
Though there is a mix of both private sector companies like Reliance Industries, Cairn India Ltd;
and public sector counterparts like Oil India, Oil and Natural Gas Corporation (ONGC) among
others in this sector. However, these companies together cater to only 25% of India’s crude oil
requirement. 75% of India’s crude oil needs is met through imports. International prices of crude
oil and foreign exchange rates form the base components of price of petrol and diesel prices in
India. But this forms only a small portion of the retail price of the fuel, the final price is
determined by other factors like taxes, duties, cess and dealer margins.

1.6 REASON WHY THE FUEL PRICES WERE DEREGULATED?

With the deregulation, fuel prices will be market-linked. That means if the international
petroleum prices rise, customers will have to pay more for buying. But in the old pricing
scenario, fuel prices weren’t cut, but they increased the subsidy for oil companies which are
around Rs. 63,000 crore. The freeing up (deregulation) of petrol and diesel prices will save the
government several thousand crores in subsidy payment this year.

1.7 WHY IS GOVERNMENT NOT REDUCING EXCISE DUTY?

There are many reasons behind the government hesitation to reduce excise duty. Even a single
rupee cut in excise duty on petrol and diesel will result in a revenue loss of several thousand
crore. When the fuel prices don’t go up, there is no reason for any tax cut. The Centre levies Rs
19.48 a litre of excise duty on petrol and Rs 15.33 per litre on diesel. States have a value added
tax (VAT), which varies from state to state. The government hopes that fuel prices would come
down in a few weeks as the geopolitical tensions across the Korean Peninsula will reduce after
a historic summit between the US and North Korea. Experts also predict that US shale gas boom
could reduce the crude oil price
CHAPTER II
 CHAPTER 2

2.1 OBJECITIVES OF THE STUDY:

1. To identify the factors influence on fuel price hike.

2. To analyse the impact of tax structure on fuel price hike.
3. To examine the dealer’s commission towards fuel price hike.
4. To find out customer opinion about fuel price hike.
CHAPTER III
 CHAPTER 3

3.1 RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify, select, process,
and analyze information about a topic. In a research paper, the methodology section allows the
reader to critically evaluate a study’s overall validity and reliability.

3.2 RESEARCH

A collection of methods and methodologies that reaches apply systematically to produce

scientifically based knowledge about the social world.

3.3 RESEARCH DESIGN

Research design is the plan structure a strategy of investigation conceived so as to obtain answer
to research questions and control variance. Descriptive research he is simply correct information
to the result the descriptive approach for this study.

3.4 DESCRIPTIVE RESEARCH

The descriptive research is the describe things such as the market potential for a product the
demographics and attitudes of consumer who by the product.

3.5 DATA COLLECTION

Research is highly specialised activity that more than just collection information or writing a
description. It involves collection of information in a targeted fashion which is further analysed
thoroughly to lead to answer of research questions and evaluate results. The collection of data is
the heart of any research design, irrespective of the field of study. Any research begins with certain
questions, which needs to be answered. Data collection is the process of gathering the desirable
information carefully, with least possible distortion, so that the analysis may provide answers that
are credible and stand to logic.

3.6 SOURCES OF DATA

The data for the study includes primary and secondary data.9

3.6.1 Primary data

Primary data is a type of data that is collected by researchers directly from the main sources
through interviews surveys, experiments.

Primary data are usually collected from the source where the data originally originates from and
are regarded as the best kind of data in research.

Primary data are collecting from the consumer those who are using fuel vehicles.

3.6.2 Secondary data

The data that have been collected and compiled by someone, and are accessible to the public, are
known as secondary data. It is the data used by the investigated from previous studies and other
sources. The primary data collected for one research study, becomes secondary data when it is
further used for another research. Generally, secondary data includes government reports, census
data, department records, etc. using such data is less expensive and faster in comparison to primary
data.
3.7 SAMPLING TECHNIQUE

The sampling technique used for convenient sampling. The respondents of those who using motor
vehicles.

The collected primary data through questionnaire has the further tabulated and represented through
pie-chart at the end of this project these data are interpreted and concluded.

3.8 Sampling unit

For the purpose of the study the respondents were selected based on convenient sampling
technique.

3.9 Sampling size

The sampling size of the study is 200.

3.10 TOOLS FOR DATA ANALYSIS

Rank and percentage analysis are used as for analysis this study.

3.11 LIMITATIONS

 The study was carried our only selected area in Karaikudi City.
 The study results are based on the information provided by public those who are using
motor vehicle.
 Some respondents were hesitate to share their responses.
 Some respondents didn’t give proper responses.
CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

 CHAPTER 4

INTRODUCTION (percentage analysis)

 Simple percentage
 Here various factors are analysed based on the simple percentage methods

Number of respondent

Simple percentage = _____________________ ×100

Total Number of respondent

4.1 GENDER WITH CLASSIFICATION

TABLE 4.1
GENDER FREQUENCY PERCENTAGE

Male 104 52%

Female 96 48%

TOTAL 200 100%

FIGURE 4.1

GENDER

MALE
48%
52%
FEMALE

SOURCE: PRIMARY DATA.

INTRPRETATION:

Figure (4.1) it’s clear that Gender wise classification, the higher number of respondents is
Male of 52% and less in number of respondent is Female of 48%.
4.2 AGE WITH CLASSIFICATION
TABLE 4.2

AGE FREQUENCY PERCENTAGE

18 – 25 140 70%
26 – 35 24 12%
35 – 50 28 14%
Above 50 8 4%
TOTAL 200 100%

FIGURE 4.2

AGE

4%
14%
18 - 25
26 - 35
12%
36 - 50
70% Above 50

SOURCE: PRIMARY DATA`

INTERPRETATION

Figure (4.2) shows that out of 200 respondents, 70% of the respondents are in the age of 18 –
25years, 14% of the respondents are in the age of 36 – 50, 12% of the respondents are in the age
of 26 – 35%, 4% of the respondents are in the age of Above 50.
4.3 OCCUPATION WITH CLASSIFICATION
TABLE 4.3

OCCUPATION FREQUENCY PERCENTAGE

Government employee 19 9.5%
Private employee 21 10.5%
Business 24 12%
Daily wager 14 7%
Students 122 61%
Total 200 100%

FIGURE 4.3

OCCUPATION

9% Government Employees
11% Private Employees

12% Business
61% Daily Wager
7%
Students

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.3 shows that out of 200 respondents 61% of respondents are Government Employees,
12% of the respondents are doing Business, 11% of the respondents are Private Employees, 9%
percentage of respondents are Students, 7% of respondents are Daily wagers.
4.4 ANNUAL INCOME
TABLE 4.4

ANNUAL INCOME FREQUENCY PERCENTAGE

50,000 – 1,00,000 100 50%
1,00,001 – 1,50,000 45 22.5%
1,50,001 – 2,00,000 35 17.5%
Above 2,00,000 20 10%
TOTAL 200 100%

FIGURE 4.4

ANNUAL INCOME

10%
50000 - 100000
18%
100001 - 150000
50%
150001 - 200000
Above 200000
22%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure4.4 shows that out of 200 respondents 50% of respondents are earning 50,000-1,00,000 and
22% of respondents are earning 1,00,001-1,50,000 and 18% of respondents are earning 1,50,001-
2,00,000 and 10% of respondents are earning above 2,00,000.
4.5 ARE YOU OWN AUTOMOBILE?
TABLE 4.5

AUTOMOBILE FREQUENCY PERCENTAGE

Yes 180 90%
No 20 10%
TOTAL 200 100%

FIGURE 4.5

AUTOMOBILE

10%

YES
NO

90%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.5 shows that out of 200 respondents, 90% of respondents are using automobile 10% of
respondents are using automobile
4.6 WHICH TYPE OF VEHICLE, ARE YOU USE?
TABLE 4.6

VEHICLE FREQUENCY PERCENTAGE

Two Wheeler 155 77.5%
Three Wheeler 16 8%
Four Wheeler 27 13.5%
Others 2 1%
TOTAL 200 100%

FIGURE 4.6

VEHICLE

14% 1%
Two Wheeler
8%
Threen Wheeler
Four Wheeler
Others
77%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.6 shows that out of 200 respondents 77.5% of respondents are using two wheeler 13%
of respondents are using four wheeler 8% of respondents are using three wheeler 1% of
respondents are using others.
4.7 WHAT'S YOUR OPINION ABOUT FACTORS INFLUENCE ON FUEL PRICE
HIKE?
TABLE 4.7

FACTORS INFLUENCE FREQUENCY PERCENTAGE

Crude Oil 56 28%
Tax 115 58%
Dealers Commission 22 11%
Relationship between OPEC 7 3%
TOTAL 200 100%

FIGURE 4.7

FACTORS INFLUENCE

3%
11% Crude Oil
28%
Tax
Dealers Commission
Relationship between OPEC
58%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.7 shows that out of 200 respondents 58% of respondent’s opinion is tax 28% of
respondent’s opinion is crude oil 11% of respondents opinion is dealers commission 3%
respondents opinion is relationship between OPEC
4.8 RANKING THE FACTORS INFLUENCE FUEL PRICE
TABLE 4.8
FACTORS RANK
Tax I
Increase in Crude Oil 11
Dealers Commission 111
Relationship with OPEC 1V

FIGURE 4.8

Chart Title
80.00% 74%
70.00%

60.00% 54.50% 54%

50.00%
42%
40.00% 32.50%
29%
30.00% 26%

15.50% 16%
20.00% 13% 12.50%
10% 7.50%
3.50% 5.50%4.50%
10.00%

0.00%
INCREASE PRICE OF TAX DEALERS RELATIONSHIP
CRUDE OIL COMMISSION BETWEEN OPEC

RANK 1 RANK 2 RANK 3 RANK 4

SOURCE: PRIMARY DATA

INTERPRETATION:

Figure 4.8 shows that most of the respondents are chosen Tax as RANK 1, Increase price of crude
oil as RANK 2, Dealers commission as RANK 3, Relationship between OPEC as RANK 4
4.9 ARE YOU AGREE INCREASE PRICE OF CRUDE OIL IN GLOBAL MARKET
INFLUENCES FUEL PRICE HIKE?
TABLE 4.9

INFLUENCE OF CRUDE OIL PRICE FREQUENCY PERCENTAGE

Strongly Agree 23 11.5%
Agree 32 16%
Neutral 32 16%
Disagree 50 25%
Strongly Disagree 63 31.5
TOTAL 200 100%

FIGURE 4.9

INFLUENCE OF CRUD OIL PRICE

11% Strongly Agree

32% Agree
16%
Neutral
Disagree
16%
25% Strongly Disagree

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.9 shows that out of 200 respondents 32% of respondents are strongly disagreed 25% of
respondents are disagreed 16% of respondents are agreed and neutral 11% of respondents are
strongly agreed
4.10 ARE YOU FEEL THAT IMPACT OF TAX STRUCTURE ON FUEL PRICE HIKE
?

TABLE 4.10

TAX FREQUENCY PERCENTAGE

Yes 170 85%
No 30 15%
TOTAL 200 100%

FIGURE 4.10

TAX

15%

YES
NO

85%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.10 shows that out of 200 respondents 85% of respondents felt ‘Yes’ 15% of respondents
felt ‘No’
4.11 WHICH TYPE OF TAX INFLUENCE ON FUEL PRICE HIKE?
TABLE 4.11

INFLUENCES OF TAXES FREQUENCY PERCENTAGE

Sales Tax 41 20.5%
VAT 83 41.5%
Central Exercise 50 25%
Others 26 13%
TOTAL 200 100
FIGURE 4.11

INFLUENCES ON TAXES

13%
20%
SALES TAX
VAT
25%
CENTRAL EXERCISE
OTHES

42%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.11 shows that out of 200 respondents 42% of respondents opinion is VAT 25% of
respondents opinion is Central Exercise 20% of respondents opinion is sales tax, 13% of
respondents opinion is others.
4.12 ARE YOU SATISFY, THE TAX CHARGE BY THE GOVT. ON FUEL PRICE
HIKE?
TABLE 4.12

TAX CHARGE FREQUENCY PERCENTAGE

Highly Satisfied 3 1.5%
Satisfied 15 7.5%
Neutral 38 19%
Dissatisfied 79 39.5%
Highly Dissatisfied 65 32.5%
TOTAL 200 100%
FIGURE 4.12

TAX CHARGE

1%7%
HIGHLY SATISFIED
33% SATISFIED
19%
NEUTRAL
DISSATISFIED
HIGHLY DISSATISFIED
40%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.12 shows that out of 200 respondents 40% of respondents are dissatisfied, 32% of
respondents are highly dissatisfied, 19% of respondents are neutral, 8% of respondents are
satisfied, and 1% of respondents are highly satisfied.
4.13 RANKING THE TAX CHARGED BY GOVERNMENT
TABLE 4.13
Tax Rank
Vat I
Sales Tax II
Central Exercise III
Others IV

FIGURE 4.13

Chart Title
80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
SALES TAX VAT CENTRAL EXERCISE OTHERS

RANK 1 RANK 2 RANK 3 RANK 4

SOURCE: PRIMARY DATA

INTERPRETATION:

Figure 4.13 shows that most of the respondents are chosen VAT as RANK 1, SALES TAX as
RANK 2, CENTRAL EXERCISE as RANK 3, OTHERS as RANK 4.
4.14 ARE YOU FEEL THAT REDUCE THE TAX IMPACT ON DECREASE THE
FUEL PRICE?
TABLE 4.14
IMPACT OF TAX REDUCE FREQUENCY PERCENTAGE
Yes 167 83.5%
No 33 16.5%
TOTAL 200 100%
FIGURE 4.14

IMPACT OF TAX REDUCE

17%

YES
NO

83%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.14 shows that out of 200 respondents 84% of respondents said ‘Yes’ and 16% of
respondents said ‘No’.
4.15 ARE YOU AGREE THAT DEALERS COMMISSION INFLUENCE ON FUEL
PRICE HIKE?

TABLE 4.15
DEALERS COMMISSION FREQUENCY PERCENTAGE
Agree 80 40%
Disagree 120 60%
TOTAL 200 100%
FIGURE 4.15

DEALERS COMMISSION

40%
Agree
Disagree
60%

SOURCE: PRIMARY DATA

INTERPRETATION
Figure 4.15 shows that out of 200 respondents 60% of respondents are disagreed and 40% of
respondents are agreed.
4.16 HOW DO YOU FEEL ABOUT THE FUEL PRICE HIKE?
TABLE 4.16

FUEL PRICE HIKE FREQUENCY PERCENTAGE

Highly Fair 20 10%
Fair 17 8.5%
Neutral 38 19%
Unfair 65 32.5%
Highly Unfair 60 30%
TOTAL 200 100%

FIGURE 4.16

FUEL PRICE HIKE

7% 2%
8% HIGHLY FAIR
5% FAIR
NEUTRAL
UNFAIR
HIGHLY UNFAIR
78%

SOURCE: PRIMARY DATA

INTERPRETATION
Figure 4.16 shows that out of 200 respondents 33% of respondents said unfair 30% of respondents
said highly unfair 195 of respondents said neutral 8% of respondents said fair 10% of respondents
said highly fair.
4.17 WHETHER THE FUEL PRICE HIKE ARE AFFECT YOUR SOCIO -
ECONOMIC LIFE.
TABLE 4.17

AFFECT SOCIO ECONOMIC FREQUENCY PERCENTAGE

Yes 191 95.5%
No 9 4.5%
TOTAL 200 100%

FIGURE 4.17

AFFECT SOCIO ECONOMIC

5%

YES
NO

95%

SOURCE: PRIMARY DATA

INTERPRETATION

Figure 4.17 shows that out of 200 respondents 96% of respondents are affected by
fuel hike and 4% aren’t affected by fuel hike.
4.18WHAT IS YOUR ALTERNATIVE MODE OF TRANSPORTATION INSTEAD
OF USING YOUR VEHICLE?
TABLE 4.18

ALTERNATIVE FREQUENCY PERCENTAGE

Bus 57 28.5%
Train 30 15%
Taxi 3 1.5%
Auto 6 3%
Cycle 60 30%
Walk 44 22%
Total 200 100%
FIGURE 4.18

Alternative mode

Bus

22% Train
29%
Taxi
Auto
30% 15%
3% Cycle
2%
Walk

SOURCE: PRIMARY DATA

Figure 4.18 shows that out of 200 respondents, 30% of respondents choose their
alternative transport as cycle, 29% of respondents choose their alternative transport
as bus, 22% of respondents choose their alternative transport as walk, 15% of
respondents choose their alternative transport as train, 3% of respondents choose
their alternative transport as auto, 2% of respondents choose their alternative
transport as taxi.
 CHAPTER 5

5.1 FINDINGS

 From the above table it is observed that the higher number of respondents is Male of 52%.
 From the above table it is observed that 70% of the respondents are in the age of 18 –
25years.
 From the above table it is observed that 61% of respondents are Government Employee.
 From the above table it is observed that 50% of respondents are earning 50,000-
1, 00,000.
 From the above table it is observed that 90% of respondents are using automobile.
 From the above table it is observed that 77.5% of respondents are using two wheeler.
 From the above table it is observed that 58% of respondents opinion is tax
 From the above table it is observed that Tax as RANK 1.
 From the above table it is observed that 32% of respondents are strongly disagreed.
 From the above table it is observed that 85% of respondents felt ‘Yes’.
 From the above table it is observed that 42% of respondent’s opinion is VAT.
 From the above table it is observed that 40% of respondents are dissatisfied.
 From the above table it is observed that VAT as RANK 2.
 From the above table it is observed that 84% of respondents said ‘Yes’..
 From the above table it is observed that 60% of respondents are disagreed.
 From the above table it is observed that 33% of respondents said unfair.
 From the above table it is observed that 96% of respondents are affected by fuel hike.
 From the above table it is observed that 30% of respondents choose their alternative
transport as cycle.
5.2 SUGGESTION
 Based on this report fuel cost is increasing day by day. In this scenario Government
should take necessary steps to reduce the fuel cost
 Overall perception of the public fuel price comes under the GST tax system. It is the
important phenomenon of the stable price of the fuel.
 Government should not depend on the conventional energy. We have transform the non-
conventional energy.
 Public should be more aware of the hiking of fuel cost. So, people should minimize the
personal vehicle to common transport system is helps to the environment as well as the
economy of the country.

5.2 CONCLUSION

The daily revision system in oil prices can never affect consumers much as international oil
prices do not fluctuate daily. Change in prices of petrol and diesel will not affect the commuters.

The price movement will immediately reflect on the account books of oil marketing firms, but
greatly help in the long run since there is no need maintain loss or subsidy. Apart from this, it
will increase of overall sales of oil marketing companies and improve the share prices.
Deregulation also brought private Oil companies Reliance Industries and Essar Oil into retail
sale of fuels. For government, low subsidy means they can meet its fiscal deficit target of 4.1 per
cent of GDP. The less fiscal deficit will reduce government borrowing and increase spending on
asset creation, which will add to economic productivity and positive impact on the rupee.
BIBLIOGRAPHY

https://indianexpress.com/article/explained/why-are-petrol-diesel-rising-crude-oil-inflation-
modi-govt

https://en.wikipedia.org/wiki/Fuel

https://www.careeranna.com/articles/petrol-pricing-in-india

https://www.thehindu.com/news/cities/Madurai/price-of-petrol-diesel-unusually-
increased/article33889914