Relation between the oil prices and the sales of automobiles
1.0 INTRODUCTION 简介
The Impact of Rising Oil Prices on Automobile Sales: 石油价格上涨对汽车销售的影响：
Impact of oil in daily life is quite evident. Oil is considered as a strategic energy for economic time line. The price of oil has an effect on cost of production in diversified ways such as with the increase in oil prices, there is an increase in the costs of transportation of export, import and goods for local expenditure. Apart from this there is also an upward slope in rates of air, road, rail and sea transportation with the rise in the price petroleum.
Oil endows with 97% of the transportation fuels that facilitates in running the trucks cars and other automobiles in the country's highway. Thus, when the price of the oil increases, it evidently alarms the automobile industry because the auto-companies are in competition with one another to fulfill the new demands for more fuel proficient consumer mindful at condensed price. There are no reservations that profit margin of the companies are affected by this. Furthermore, rise in oil price also affects the kind of means of transportation demanded by the buyer and the way those vehicle motors are designed.
The escalation in the petroleum prices plays a major part in the automotive industry. "The world consumes over 82 million barrels of oil per day (BPD), with the united states taking roughly 20 million BPD"1.
Petroleum is one of the most essential contributions in a nation's economy and its price has extensive economic and social impacts. Various researches illustrate that the price of petroleum in Pakistan is considerably high either with or without involving per capita income and it needs to be leveled downwards in order to guarantee competitiveness of Pakistan's exports and lessen the burden on the buying competence of the nation. Nevertheless, this cannot be a simple task as Pakistan heavily depends upon imported oil in order to fulfill its petroleum necessity and the development surcharges and the import revenues compose a major sector of the Government income. However, a feasible and reasonable solution to trim down oil price is needed keeping in sight the revenue making facet and the prevailing global prices of crude oil.(责任编辑：BUG)