I think Oligopoly or Cartel market
structure domestic oil companies is operating If domestic oil prices
continue to rise in future then it will be impact on cost of basic necessities
of life in the country is that The cost of food rises as well, partly because
oil is used in many ways in growing and transporting food and partly because of
the competition from bio fuels for land, sending land prices up. The cost of
shipping goods of all types rises, since oil is used in nearly all methods of
transports. The cost of materials that are made from oil, such as asphalt and
chemical products, also rises if the cost of oil rises, it tends to raise the
cost of other fossil fuels. The cost of natural gas extraction tends to rises,
since oil is used in natural gas drilling and in transporting water for
frocking. Because of an over-supply of natural gas in the country, its sales
price is temporarily less than the cost of production. This
is not a sustainable situation. Higher oil costs also tend to raise the cost of
transporting coal to the destination where it is used.
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own words don’t copy past I m not responsible incase of zero marks
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