The government today broadly hinted about a hike in petrol and diesel prices, saying although it has kept retail prices unchanged it cannot do so for long, given the rise in crude oil rates.
Petrol and diesel prices were cut by Rs 2 a litre and Re 1 per litre respectively in February, but since global oil prices have appreciated. The Indian basket of crude oil has averaged 72.31 dollars per barrel this month, up 14 per cent from February.
With this do we see another round of economy correction? Higher fuel rate, more inflation, more monetary controls, lower liquidity, reduced money spending ability; in turn lower growth rate?
2 Comments
Tell a friend
Bury
Petrol and diesel prices were cut by Rs 2 a litre and Re 1 per litre respectively in February, but since global oil prices have appreciated. The Indian basket of crude oil has averaged 72.31 dollars per barrel this month, up 14 per cent from February.
With this do we see another round of economy correction? Higher fuel rate, more inflation, more monetary controls, lower liquidity, reduced money spending ability; in turn lower growth rate?
2 Comments
Tell a friend
Bury
Marathikatta.com - A community for true maharashtrians and mumbaikars! Register, read, write, vote, comment and make friends! Forward this to all your friends and make it popular!
Comments
"Oil price update - July 25"
Oil prices slid for a fourth day on Wednesday, on forecasts of higher refinery production in the United States that would ease worries over fuel supplies during peak summer demand.
London Brent crude, currently seen as more representative of the world market, fell 51 cents to $74.57 a barrel by 0828 GMT, after tumbling $1.78 on Tuesday. US crude for September traded 26 cents lower to $73.30.
http://www.arabianbusiness.com/index.php?option=com_content&view=article&id=496644
"Rupee touches fresh nine-year high"
The rupee gradually approached the crucial 40-mark on Monday, touching new nine-year high of 40.22 against the US currency in early trade, drawing strong support from pouring down portfolio investments into Indian equity. Foreign investments crossed USD 10 billion so far in the currency year after a record single month inflow of USD 5.8 billion in July 2007.
http://www.mumbai.headlinesindia.com/index1.jsp?news_code=49382
With rupee appreciating RS. 7/- in a year from 47 to 40, doesn't it make import cheaper; oil and defense being having largest pie in imports, shouldn't appreciating rupee compensate appreciation of oil/petrol prices?