NEW DELHI: Pinning hopes on further aid in international crude oil prices, economic affairs secretary Subhash Chandra Garg on Thursday indicated that the retail prices of petrol and diesel may just see an additional decline.
Asked about a mere 1 paise aid in petrol prices announced by oil corporations the day prior to this, Garg termed it "formula driven", but added that the trend for aid had begun.
"It is not material that it is 'x' paisa today or 'y' paisa. The trend for reduction has started. Earlier since the (crude) prices were going up, the trend was building up the prices. Maybe going forward, you might see some more reduction ...," he instructed newshounds right here.
Yesterday, native petrol and diesel prices had been minimize by 1 paisa a litre each. Today again the gasoline prices had been reduced -- petrol by 7 paise a litre and diesel by 5 paise.
Garg said the federal government is operating on a long-term approach to care for any spurt in crude oil prices, and together with petroleum underneath GST is likely one of the choices being mentioned.
"Last 3 days data indicate that there is a perception that possibly the oil prices have stabilised. If that trend continues, I hope we will have a manageable situation .... At one point crude oil prices had risen near to US dollars 80 per barrel, now it has come down to US dollars 75-76 ...," he instructed newshounds right here.
After relentless upward push, crude oil prices have proven signs of cooling down after Saudi Arabia and Russia said it could produce more crude to extend provides.
Stating that the futures price of crude oil is less than the spot price, leader economic adviser Arvind Subramanian said the shale fuel may just make a difference.
"... you can't say the expectation is more and more increase in (crude) price," Subramanian said.
Garg said oil prices at about 75-80 greenbacks, towards the remaining year's average of 55 greenbacks a barrel is going to have "reasonable or a good impact" at the way the economy runs.
"There is a certain implication for oil bill, trade account, CAD and consequential expectations play into behaviour of FPI and others. But in last 3-4 days, the FPI are not net sellers any more," he said.
"I dont think because of oil prices, we need to revise GDP growth," Garg said.
On bringing petroleum within GST to help minimize down taxes on petrol and diesel, Garg said the option is being weighed.
"The option of GST can be a part of the long term solution. But it too has a lot of implications. It is not easy to convert (include) petroleum into GST. States have their views. Whether it can be part of long term solution that needs to be discussed," he said.
While products like kerosene, naphtha and LPG is underneath the ambit of Goods and Services Tax (GST), five pieces in the basket -- crude oil, natural fuel, aviation gasoline, diesel and petrol -- were excluded during the initial years.
To a query on why the long run resolution being worked out by the federal government used to be taking time, Garg said "We can't be so hurried that you treat some days as a long wait".
The nuances of the mechanism are being mentioned preserving all sides in mind, he said.
Asked about a mere 1 paise aid in petrol prices announced by oil corporations the day prior to this, Garg termed it "formula driven", but added that the trend for aid had begun.
"It is not material that it is 'x' paisa today or 'y' paisa. The trend for reduction has started. Earlier since the (crude) prices were going up, the trend was building up the prices. Maybe going forward, you might see some more reduction ...," he instructed newshounds right here.
Yesterday, native petrol and diesel prices had been minimize by 1 paisa a litre each. Today again the gasoline prices had been reduced -- petrol by 7 paise a litre and diesel by 5 paise.
Garg said the federal government is operating on a long-term approach to care for any spurt in crude oil prices, and together with petroleum underneath GST is likely one of the choices being mentioned.
"Last 3 days data indicate that there is a perception that possibly the oil prices have stabilised. If that trend continues, I hope we will have a manageable situation .... At one point crude oil prices had risen near to US dollars 80 per barrel, now it has come down to US dollars 75-76 ...," he instructed newshounds right here.
After relentless upward push, crude oil prices have proven signs of cooling down after Saudi Arabia and Russia said it could produce more crude to extend provides.
Stating that the futures price of crude oil is less than the spot price, leader economic adviser Arvind Subramanian said the shale fuel may just make a difference.
"... you can't say the expectation is more and more increase in (crude) price," Subramanian said.
Garg said oil prices at about 75-80 greenbacks, towards the remaining year's average of 55 greenbacks a barrel is going to have "reasonable or a good impact" at the way the economy runs.
"There is a certain implication for oil bill, trade account, CAD and consequential expectations play into behaviour of FPI and others. But in last 3-4 days, the FPI are not net sellers any more," he said.
"I dont think because of oil prices, we need to revise GDP growth," Garg said.
On bringing petroleum within GST to help minimize down taxes on petrol and diesel, Garg said the option is being weighed.
"The option of GST can be a part of the long term solution. But it too has a lot of implications. It is not easy to convert (include) petroleum into GST. States have their views. Whether it can be part of long term solution that needs to be discussed," he said.
While products like kerosene, naphtha and LPG is underneath the ambit of Goods and Services Tax (GST), five pieces in the basket -- crude oil, natural fuel, aviation gasoline, diesel and petrol -- were excluded during the initial years.
To a query on why the long run resolution being worked out by the federal government used to be taking time, Garg said "We can't be so hurried that you treat some days as a long wait".
The nuances of the mechanism are being mentioned preserving all sides in mind, he said.
Finance ministry hopes decline in crude prices to continue
![Finance ministry hopes decline in crude prices to continue]()
Reviewed by Kailash
on
June 01, 2018
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