What has happened?
After a sharp fall at the beginning of the year, oil prices have risen dramatically in recent weeks. The price of Brent crude has risen by around $10 since it touched a short-term low of around $62 in early February, hitting its highest mark since late 2014.
Reason for high Oil prices
Tensions in West Asia after U.S. President Donald Trump’s decision to strike Syria helped push up prices
No effect on prices in India
The retail selling prices of petrol and diesel across major Indian cities have in fact risen by less than a rupee since the beginning of April
Imposing duties
It has imposed high duties on petroleum products ever since crude oil prices started moderating in 2014, but has been reluctant to scale down those duties in the face of rising prices, leading to record pump level prices
Conclusion
How the Centre responds to rising international crude oil prices was always going to be the litmus test of its commitment to fuel price deregulation. In the current situation, it appears that the government has only tied itself up in knots over the petroleum pricing policy, and with it, its reformist credentials.
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