The oil ministry’s decision to not cut fuel prices as of now is a step in the right direction. Since oil marketing companies are making huge losses, any talk of reduction is premature. The erosion of the Indian rupee vis-a-vis the dollar by about 20 per cent has to be factored in. Revision of prices will not be feasible unless oil goes below $45 per barrel. It will be prudent to revive the oil pool account instead of reducing the prices as a populist measure. The issues pertaining to the oil marketing companies should be taken care of and the shortage of diesel felt in some places must be addressed. The private players who have created a network of dealers and have set up petroleum outlets must be treated at par with PSU oil companies in respect of subsidies. The idea of upgrading refineries to manufacture petroleum products in conformity with Bharat 1V grade must also receive recurring emphasis.
M M Gurbaxani, Bangalore