Indian Government considering revising oil prices

NEW DELHI, APP: The Indian government is considering to revise oil prices as it is not possible for it to keep the present level of prices indefinitely due to upsurge in the international market.

Media reports quoted External Affairs Minister Pranab Mukherjee in Kolkata as saying “there is no carpet under which you can keep the price shocks for indefinite period without affecting the economy.” Pranab Mukherjee is currently heading a Group of Ministers on oil pricing.

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Talking to mediapersons on the sidelines of a seminar, he said heavy subsidies had kept the prices low despite surge in international market from $ 36 to $ 100 per barrel.

The government has so far passed on only a fifth of the hike to consumers despite the fact the crude oil prices had risen 150 percent.

Prime Minister Manmohan Singh and Reserve Bank of India have already cautioned over rise of oil prices and its possible impact on the economy, particularly the prices. The Indian government is already giving subsidies to the tune of over Rs. 1, 00,000 crore during the current financial year in petroleum, fertilizer and food sectors.

The Indian reserve bank in its report has said “high and volatile crude oil prices in the international markets pose a major risk to domestic price stability.”India is importing about 70% of oil out of its total requirements.