"Chart: 4, Source: The Telegraph, 2013The recession and the inflation affects the price of the petroleum extensively. This is the reasonbehing the growth of the petroleum price. When the demand goes faster than the supply then theprice of the petroleum increses. Hence the recession arrises. 9 Chart: 5, Source: Euan Mearns, 2011The above image shows the association of the GDP growth in Uk with the price fluctuation ofthe Oil Price. In the year 2002, it is clearly seen that GDP growth has declinede from 1999 withdecline in the price of the Oil. In the year 2008, there is huge decline in both the price and theGDP growth in UK when the recession was occurred in the world economy(Euan Mearns, 2011).However the exhaustion of the natural resources nowadays spreading awarness across thecountries. Countries are more aware about the usage of natural resources nowadays. The searchfor alternative renewable resources like solar energy, wind and nuclear energy, geothermal,trading flow etc.has been incresed after the increment of the global warming. All this difficultieshas been arised due to the random use of this natural resources. Thus, Sustainable growth helpedin controlling unregulated petrol consumption by UK(Azapagic, et al., 2004).10 Supply Side Factors:The factors that affects the supply of the Petroleum extensively are production capacity,organizations of petroleum exporting countries, inventories, exchange rate and other factors. TheUK Oil and Petroleum Market is an international set up. The supply rate of the petroleum oilbecome slower than its demand in the market in last few decades. As the production of thepetroleum oil has been decreased, so its supply has been declined. The geopolitical difficultiessuch as Arab Spring. The speculation in the world trade market is another significant reason thatinfluences the supply side factor of the Oil price in UK market( Nathan Randazzo, 2014).The OECD member countries are the owner of the 72% of the Petroleum reserves and thebiggest supplier of the Petroleum Oil. The OECD members meet twice in a year and fixed theprice of the Petroleum and oil. The supply factor of the Oil is highly dependent upon the pricefixed by the OECD members each year.Crude and petroleum commodity inventories help tostabilize the effect of efficient supply disturbances in the short period. In case of low inventories,markets can be sensitive more than before to genuine or apparent supply disturbances or demandvariations.The crude oil and the petroleum are traded in US$ and the strength of the currency caninfluence the oil price extensively. This effects the supply of the commodity. Moreover, oilexploration and the cost of production also have an impact on the supply of the oil and thepetroleum. Market sentiment of the oil also have an impact on prices. In the last half of the 2014,US has consumed extraction of the 9 million barrels per day(Great Britain, 2012).11 Government’s action towards the high consumption of Petrolincludingsuch externalities:The resource stock of Oil is going to be exhausted due to the intensive use of the resource. It isbecome the sole reason behind the exhaustion of the resource. The government of UK shouldmaintain also the sustainability part of the country. So the UK government can introduce severalsubstitute to decrease the usage of the Oil price. Externalities are the impacts that affect anindividual that may or may not be involved directly with the movement, but indirectly eitherenjoys or hurtsdue to the outcome of the economic action. The benefits of the economic activitycalled positive externality and the disadvantages of such actions called negative externalities.Negative externalities play a role in the society to harm the individual whereas the positiveexternality benefits the economy..Chart 6, Source: William Lawrence McKinney, 2013In the above diagram MSB=Merginal Social Benefit, MC=Merginal Cost, MSC=Merginal SocialCost, MB=Merginal Benefit. 12 "