Pricing mechanisms of petroleum products implemented during the post APM period in India: an analysis Online publication date: Tue, 05-Dec-2023
by Pallakshi Bordoloi
International Journal of Indian Culture and Business Management (IJICBM), Vol. 30, No. 3, 2023
Abstract: Several structural changes have taken place in the pricing system of major petroleum products in the Indian petroleum industry since its origin. The administered pricing mechanism (APM) was a remarkable change that has taken place in the history of the Indian petroleum industry for determining petroleum product prices. The development and economic condition of this industry is an important matter of national interest. Rapid globalisation and a fast changing economic environment brought enormous opportunities for the oil companies in India to prosper and spread out their operations globally. The objective of this paper is to critically discuss the pricing mechanisms followed during pre and post APM period and to find out the logic of implementing import parity pricing (IPP), export parity pricing (EPP) and trade parity pricing (TPP) mechanisms during post APM period.
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