petroleum prices in India

The increase which amount to 11.5% in Delhi will help oils companies which reported josses in three successive quarter but will not easy the country mounting subsidy burden because loose for below market sale of petrol are borne entirely by the state runs firms. The government foots the bill for subsided sale of cooking gas which will continue to be sold below market price unless the empowered groups the ministers approve a hike.Diesel prices at Rs.40.91 per liter in Delhi remain unchanged making petrol almost 80% more costly. This would accelerate the shift in demands from petrol to diesel cars and official industry said.

Oils firms have been seeking permission since January to raise petrol prices. They are free to price the fuel the way the want but the oils ministry informally blocked the move initially because assembly elections and later to prevent the crucial sessions of parliament as reported first by ET.Oil industry officials said the currency sharp fall to a record low of 56 against the dollar forced them to the raise prices even though crude oil has fallen to about $107 from $126 in the past month. But mamata banerjee is not convinced. “considering  the international price crude oil price of petroleum products should be reduced but the centre has increased the petrol price”. It is an easy solution to increase petroleum products to cope with financial crisis. In the country but the centre should think for a alternative to this. We are pro-people party and we cannot support this “she said.

She question the timing of the move, saying the government should have discussed this in parliament which was in session a day before price were raised, but the party would remain the member of the ruling coalition she had earlier to withdraw if fuel price were increased. “ we can topple the government, but we was not ,” she said.