PESTEL Analysis of Indian Oil Limited ANUSHKA

PESTEL analysis of Indian oil limited
POLITICAL
In India, despite having an energy policy, there is no oil consumption policy. The factors that make
up these are as follows: privatization of public transport for cost reduction and improved
efficiency, several companies like Tata introducing Rs 1 lakh cars and huge investment to improve
railway infrastructure.
Through adopting policies to reduce demand for petrol and diesel consumption, the government
can take positive steps to stop India's people from becoming addicted to fuel. Automobiles can
also be subject to high duty by the government. India's labor unions will be unhappy if public
transportation systems are privatized because their influence to monetize their personal wealth can
no longer be enjoyed.
The industry should obey tax policy; enforce industrial labor laws, trade restrictions, country
political stability, environmental laws and tariffs.
ECONOMIC
The major developments in the automotive and aviation industries have a multiplier effect, which
will ultimately increase India's Gross National Product (GNP).
Sometimes in order to reduce the country's deficit, the government has to purposely increase petrol
and oil prices. And sometimes the government's inflation rate estimates surpass because of rising
fuel prices. Inflation has a major impact on the oil industry.
India's unemployment rate is 10.8%. Study has shown that the rate of unemployment is interrelated
with the price of fuel. If there are more jobs, people buy more cars and bikes, and this has an effect
on fuel prices.
When inflation rises, there is an impact even on the interest rates of the country. India's Reserve
Bank recently lowered interest rates due to high inflation. So the inflation of the fuel price is
interconnected with the interest rate.
The economic factors, along with additional commodities, substitute capital and the exchange rate
of the American dollar on the market, affect the supply and demand of the oil prices.
SOCIETY
India has around 1.1 billion inhabitants. Every year there is a significant increase in oil
consumption. As of 2009, oil consumption was estimated to be about 2.68 million barrels per day.
India has undergone a complete transformation since its independence. The main transition sectors
are the aerospace, IT, transportation, telecommunications, oil and automotive industries. The
lifestyle change and more western culture's influence have made India buy more and more bikes
and cars. This has led to increased oil consumption.
Many foreign companies are coming to India today, and the employment rate has been affected by
this. This has helped create more jobs and increased income distribution. There is also a substantial
increase in disposable income that has boosted oil consumption.
Higher education rates again resulted in demand for mineral water and so on. As a result, demand
for oil and gas that is generated from production has increased.
The oil industry has brought changes in people's lives. There is no community that is opposed to
the petroleum exploration and people like the oil industry because it is important for their
prosperity and welfare. Many people think it's a great source of pollution that impacts the
atmosphere, but they can't deny this industry's significance. They believe that the govt. should
impose a ban on pollution creation and introduce legislation to reduce pollution.
TECHNOLOGIES
India invests huge amounts of money on research and development. The R&D center is fitted with
state-of - the-art equipment that has helped produce over thousands of lubricating oils
formulations. Such assist with diff catering. Indigenous petroleum sectors such as public utilities,
railways, defense and transportation.
India has also won numerous awards for the quality of centered work in lubricants, manufacturing
methods, additives, grease formulations, biotechnology, pollution tests, pipeline transport and
engine assessments.
The R&D centers are fully operational to provide technical aid for operating parameters, fresh
process development and feedback assessment and device know-how for catalysts and licensors.
The refinery machinery and equipment of the R&D center are an extremely dedicated facility to
Indian Oil Corporation and other oil companies.
India's refineries are fitted with the latest refining equipment. In order to produce better fuel value,
Govt. has spent more than Rs 32000 crore to upgrade the machinery in the refineries. We are now
using Euro-IV style gasoline throughout the country in Indian.
Government has continuous emphasis on R&D in new technologies to develop environmentally

friendly processes. Over the past few years, this industry has a general trend to import the
technology and develop indigenous manufacturing and marketing.
ENVIRONMENT
Environmental factors are now one of the oil industry's most important factors. The environmental
research needs to focus more on critical issues implemented in recycling systems as they impact
the process of refining in the oil industry today. Environmental protection also impacts
transportation systems, processing, choices for recovery and use.
The tanker oil spills affect and harm the habitats. Similar to oil spills on shore, oil spills in the
ocean are more harmful. This kills the marine life and the government is taking steps to monitor
these oil spills. It is quite difficult to control oil spills because it requires complex procedures and
a great deal of manpower.
We will consider macro-environment as investors make their investment in the oil and gas
industry. Oil and gasoline must be used in the market, but oil and gas services still need to be used,
so the govt. Strict regulations on oil and gas use to mitigate the negative effects of the oil and gas
industry should be enforced by the departments concerned.
LEGAL
Since the year 2000, India has passed an emission check every six months for each car. Mostly in
the European countries, this was observed. It is done to test the vehicle's health and to check the
amount of released emissions. The understanding will be brought down by a reduction in custom
work. Industry's disinvestment plan like oil and gas may also be affected by unstable government.
The legal aspect affects oil product discovery, production and marketing. Some legal positions
such as labor regulation, labor protection, social protection, competition regulation, pollution,
international trade and consumer protection have to be faced by this industry. Subsidies, fuel taxes
and oil prices must be paid by the industry.

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Government has continuous emphasis on R&D in new technologies to develop environmentally

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