Policy needed for petrol pricing
With the global crude oil price steadily going down, petroleum companies have reduced the price steadily to the present level of around Rs. 69 to 70/- per litre. With the global crude oil price likely to come down further in short term, the question is as to what extent oil companies / government 0f India should allow the retail price of petrol to fall.
India imports around 220 million tonne per annum of crude oil ( which is the feedstock for the production of petrol ) and the figure is going up at the rate of 6 to 7% per year. Around 70% of the outflow of foreign exchange now goes for import of crude oil. Indian dependence on import of crude oil is now at alarming level.
Any reduction in the price of petrol will inevitably lead to higher consumption of petrol, that would not help in reducing the import dependence of crude oil and would further compound the problem of import dependence for crude oil.
In such circumstances, limiting the consumption of petrol in the country at certain level is vitally important. Government of India should avoid blindly reducing the petrol price to please the consumers, which will increase the consumption of petrol and create problems by increasing import dependence and foreign exchange outflow.
Once consumption goes up, it is difficult to bring it down. When global crude oil price would rise again which is likely due to several reasons, the consequences for Indian government’s finances would be severely adverse.
N.S.Venkataraman
Nandini Voice For The Deprived
nandinivoice.com more
India imports around 220 million tonne per annum of crude oil ( which is the feedstock for the production of petrol ) and the figure is going up at the rate of 6 to 7% per year. Around 70% of the outflow of foreign exchange now goes for import of crude oil. Indian dependence on import of crude oil is now at alarming level.
Any reduction in the price of petrol will inevitably lead to higher consumption of petrol, that would not help in reducing the import dependence of crude oil and would further compound the problem of import dependence for crude oil.
In such circumstances, limiting the consumption of petrol in the country at certain level is vitally important. Government of India should avoid blindly reducing the petrol price to please the consumers, which will increase the consumption of petrol and create problems by increasing import dependence and foreign exchange outflow.
Once consumption goes up, it is difficult to bring it down. When global crude oil price would rise again which is likely due to several reasons, the consequences for Indian government’s finances would be severely adverse.
N.S.Venkataraman
Nandini Voice For The Deprived
nandinivoice.com more
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Rather than keeping prices up , it's better govt. Including oil companies spend more in oil exploration . Common middle class people need respite from high prices with market conditions going from good to bad & traders feeling the heat too. more
Dec 02
My Mail ID is changed to dhirendra@umauto.in so you are requested to do communication to new mail id. Thanks & Best Regards , more
Dec 02
