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Government rules out intervention in fuel pricing mechanism

Newspatrolling: After rising fuel prices have sparked a debate in the country, the government said today that it will not intervene to change the current fuel pricing mechanism. It may be recalled that as per the current mechanism of fuel pricing, prices of petrol and diesel are revised on a daily basis. This is done to reflect global crude oil prices and the cost that oil producing and marketing companies have to bear. The fuel prices have been rising since July and many people have started complaining about it. However, Oil minister Dharmendra Pradhan said that the government will not intervene to override the current pricing mechanism. Experts said that people should not worry about cyclic fluctuations since they will stand to gain when prices fall. People need to consider the overall effect instead of worrying about cyclic ups and downs.

Pradhan also pointed out to this and said that only the price hike is being highlighted. He said that no one said anything when prices had dropped earlier. Pradhan said that the daily price revision system has been designed to benefit the customer and not the oil companies. He said that daily price revisions allow the benefits to be passed to the customer immediately. Also, if there are any spikes, it is distributed over a period to reduce the overall effect. “The government has no business to interfere in day to day operations of oil companies. If at all, efficiency is only areas government will interfere to improve operational efficiency of oil companies,” Pradhan said.

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