Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Low inflation shows oil price benefit passed on: Pradhan

  1. What? Oil Minister Dharmendra Pradhan has strongly dismissed the perception that the Govt has failed to pass on the benefits of lower oil prices to Indian consumers
  2. How? He cited reasonable levels of inflation over the past two years as a proof of transferring the benefits of lower oil pries
  3. If Govt had not passed on the crude oil price benefit to the consumer, the transportation sector would not have seen so much rationality in prices
  4. Avoiding shocks: He also defended the high taxation on fuels as a tool to protect people from a price shock when oil prices start to climb up again
  5. There is no developed country that has transferred the benefit of sliding oil prices to the consumers in any real way
  6. Use of savings: Centre has been using the fuel tax receipts to finance critical development programs such as affordable housing, cooking gas connections for the poor and so on

Leave a Reply

Please Login to comment
Notify of