By NNN-PTI,
New Delhi : With global crude oil prices climbing to their highest level in two-and-a-half years, India’s Oil Minister S Jaipal Reddy on Friday said a ministerial panel will take a call on raising petrol and diesel prices.
“There is volatility in the international market. I wish to take the matter to the Empowered Group of Ministers (EGoM) after the Budget is presented,” he told reporters here.
International crude oil prices have topped USD 110 per barrel, widening the gap between the domestic retail selling price and cost of production.
“Finance Minister Pranab Mukherjee, who heads the EGoM, is at present busy with Budget. The matter will be considered by EGoM whenever he gives time (for the meeting),” he said.
The Petroleum Ministry is pinning hopes on customs and excise duty cut in the Union Budget to avoid hiking petrol and diesel prices.
Finance Minister Pranab Mukherjee said Indian economy is resilient enough to deal with the rising crude oil prices that surged to 30-month high.
“Yes, oil prices are going up but Indian economy has the resilience to deal with the situation when it becomes extremely aggressive,” Mukherjee said here.
“In past we have done it. Let us see how we will be doing it”, Mukherjee said adding the government’s response has to be formalised.
Yesterday, oil prices surged to 30-month high fuelled by political crisis in the Middle East.
Brent rose to USD 119 per barrel, while crude prices were hovering around USD 100 per barrel.
Meanwhile, the Economic Survey 2010-11 also pointed out that the spiralling crisis in the Middle East and rising global commodity prices could increase inflationary pressures at home.