IMPACT OFPETROLPRICESONAUTOMOBILE SALES: ANAPPLICATIONOFPSYCHOLOGYOF PERCEPTION

Abstract

Petrol prices have seen a meteoric rise in the past few years, trailing the rise in global crude oil prices and a shortage of supply. In the first quarter of 2022, petrol prices reached their highest level since 2018. The consumption of petrol or other fuels is common in almost every household. However, with the increased imposition of Central and State taxes, there has been a further hike in petrol price. The increased prices have an impact on the share of money that people spend on purchasing fuel. The Automobile industry contributes greatly to the nation’s Gross Domestic Product, generates jobs and plays a part in improving the image of the Indian manufacturing industry. The decision to purchase an automobile for personal use has many facets and points of consideration. The average Indian consumer does consider the impact purchasing a car may have on their personal expenses. Owning a vehicle also gives a sense of personal success to many people, since they have grown up with the perception of a car being indicative of social status.