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This talks about how Indian Oil Corp used to be a monopoly of fuel in India. So going from in-elastic to elastic due to launching of new companies that produce fuel.

Sinopec profit raises directly link to the relaxation of fuel price controls. Sinopec is a government control company, which controls a great deal of the lucrative oil market. When the government eased the fuel price control, it meant that the price could be increased by the oligopoly. This allowed greater margin of profits, which will benefit Sinopec and the government in terms of taxes. The problem is that when price of fuel which is an essential inelastic commodity increases, the inflation will increase for the average consumer. The consumer will have to pay more his daily consumption, which will affect the prices of the goods and services that he is selling.

Atalia supplier warns over fuel supply