The UPA government may keep its option open to raise the fuel prices. The price of the crude in the international market has been increasing and considering the interest of the oil companies the government may declare hike in the petrol and diesel price.
The government will also table its full budget in the house and the complete budget session would end by August 7. The price hike completely depends on the price of the crude in the international market which is being traded at around 70 per barrel. Due to the high price of the crude in the international market, the government had hiked the petrol and diesel price last year. Last year, the crude price had touched to around $140 per barrel. BY then it was speculated that the price may touch to $200 per barrel.
Due to the slowdown and other global factors the crude price in the international market has dropped significantly to around $40 from $140. In order to stabilize the price of crude the OPEC has been also regulating the production of crude from last year. But this year the growing crude prices will have impact on Indian economy. The oil companies and PSUs in India have been suffering huge loss due to the rising crude price in the international market.
The hike in the petrol and diesel price by the UPA government however considered as unpopular in India. But the government has limited options to check the impact of the high crude price on the oil companies and PSUs. The Union Petroleum Minister of India has also stated that the rising crude price as a big concern for the economy.
It is expected the government of India will explore all the option before declaring any hike in the petrol and diesel price. The rise in the petrol and diesel price will give relief to the oil companies, PSUs and Indian economy.
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