The price of fuel is not increasing in the international market now. In fact, the price of fuel is slowing going down. Now, many people in India are hopeful that Indian government may reduce the price of oil. Well, Indian Petroleum Minister Murli Deora does not share this enthusiasm and he is against the reduction of price of oil unless crude oil prices comes down to $50 a barrel in the international market. Business Standard reported:
“Petroleum Minister Murli Deora today ruled out any immediate cut in petrol and diesel prices in line with the fall in global crude oil prices.
"It is not appropriate to cut prices now. When crude touches $50 a barrel, we may think about that," Deora said.
He said the decline has cut the losses of oil companies on sale of petrol, diesel, domestic LPG and kerosene, but has still not made selling fuel profitable. "Losses are still there. I wish international prices fall further."
The government had, in June, raised petrol and diesel prices by Rs 3 and Rs 2 per litre, respectively, as a fallout of the spike in crude oil prices. The hike, however, was not enough to cover for the rise in cost of raw material (crude oil), and public sector oil companies were asked to bear a substantial part of the loss on fuel sale.”
Many consumers would now want to see the reduction of price of fuel. I agree with Murli Deora that Indian government should not cut price. Indian oil companies have suffered heavy losses in the last few months because of rising oil price in the global market. So, they should have some breathing space now.
What do you think?
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