Shareholder’s wealth creation in India post deregulation of petrol prices *Dr. Shashank Bhushan Lall ** Shubhadeep Chakraborty ________________________________________________________________________ Abstract: The study examines the effect of deregulation of petrol prices upon the wealth creation process of the shareholders of the Indian oil marketing companies. The Government of India has deregulated the petrol prices since 25th June 2010 and has allowed the oil marketing companies to link the retail selling prices of petrol to the market. The liberty in fixation of prices has a long lasting impact upon the wealth creation possibility of the shareholders of the oil marketing companies. International crude prices have off late been caught in a bearish trend which has pushed the international crude oil prices to new lows. This has reduced the import cost of crude oil for India and has helped in taming the inflationary trends in our country. Indian oil marketing companies too have benefited from this bearish trend as their under recoveries have come down considerably. Efficient cost management and free pricings of petrol have helped in increasing share price returns and creation of wealth for the shareholders of these companies. With partial deregulation the finances of Government of India has improved a lot due to huge savings in oil subsidies. The results of petrol deregulation is so positive that The Government of India is seriously contemplating about deregulating the diesel too from her control and make the retail selling price of diesel market linked. Key words: Deregulation, Petrol prices, wealth maximization, oil marketing companies * Dr.. Shashank Bhushan Lall is an Associate Professor at Patna University, Patna. (E): lallshashankbhushan@gmail.com, (M):+91 94310 77491 **Shubhadeep Chakraborty is an Assistant Professor in the area of Finance at Amity Patna. (E): , (M): +91 99312 37224
Shareholder’s wealth creation in India post deregulation of petrol prices *Dr. Shashank Bhushan Lall ** Shubhadeep Chakraborty ________________________________________________________________________ Abstract: The study examines the effect of deregulation of petrol prices upon the wealth creation process of the shareholders of the Indian oil marketing companies. The Government of India has deregulated the petrol prices since 25th June 2010 and has allowed the oil marketing companies to link the retail selling prices of petrol to the market. The liberty in fixation of prices has a long lasting impact upon the wealth creation possibility of the shareholders of the oil marketing companies. International crude prices have off late been caught in a bearish trend which has pushed the international crude oil prices to new lows. This has reduced the import cost of crude oil for India and has helped in taming the inflationary trends in our country. Indian oil marketing companies too have benefited from this bearish trend as their under recoveries have come down considerably. Efficient cost management and free pricings of petrol have helped in increasing share price returns and creation of wealth for the shareholders of these companies. With partial deregulation the finances of Government of India has improved a lot due to huge savings in oil subsidies. The results of petrol deregulation is so positive that The Government of India is seriously contemplating about deregulating the diesel too from her control and make the retail selling price of diesel market linked. Key words: Deregulation, Petrol prices, wealth maximization, oil marketing companies * Dr.. Shashank Bhushan Lall is an Associate Professor at Patna University, Patna. (E): lallshashankbhushan@gmail.com, (M):+91 94310 77491 **Shubhadeep Chakraborty is an Assistant Professor in the area of Finance at Amity Patna. (E): , (M): +91 99312 37224
1-Shareholderu2019s_wealth_creation_in_India_post__deregulation_of_petrol____________prices.docx