Slippery slick

Slippery slick

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.