Should Indian government cut the fuel prices!!

[udit]

It is well known that the oil prices in the global markets have decreased a lot. But Indian government is not taking action to cut down the prices in the Indian markets. People are saying that if the government can increase the prices when global prices increase, Why can not they decrease it. What is your opinion??

 

[sarthak_88]

hi Udit
yes i think the oil prices should be slashed because as we all know that crude oil price in the world market has been slashed 5 times.and still there is not even a marginal dip in the prices as yet.
Although the government has plans of slashing prices...
lets see when this good thought becomes a reality...

 

[udit]

One thing that should be considered in this case is that the Indian Oil companies were in loss a few days back when the prices were high. But these days they are earning a good profit. So it might be a step of government to make these oil companies financially strong.

 

[mrregularman]

How does that work in India? It sounds like the market place does not set the retail price? The government controls this price?

 

[mike21]

How does that work in India? It sounds like the market place does not set the retail price? The government controls this price?

Well in India the government controls some of the areas like controling the oil prices but most of the prices like F.M.C.G sectors or other private areas are controlled by the government.Now about the oil strategy,i really don't think that Indian govt should reduce the prices because India is a country in which people start to make hue and cry over re 1 increase in petrol prices and if the govt decreases it now and then if it has to increase it again then it will have to face a lot of protests also we should also give some breathing time to the indian oil companies as they were in loss since stone age.

 

[mrregularman]

With the price control of oil in India. When the price of the barrel drops, who earns the added profit, the government, or the oil companies. Or, does the Government actually own the oil company?

Thanks.

 

[jessika]

General public can see only what government is doing currently and it is not able to analyze the inner truth of the situation. It is a fact that in India, government highly subsidizes the fuel rates by bearing the high cost on it's own, this raises the demand in the market. But when the deficit reaches a certain danger level, it starts transferring cost to the general public which we cannot absorb.

 

[GunnedDown]

With the price control of oil in India. When the price of the barrel drops, who earns the added profit, the government, or the oil companies. Or, does the Government actually own the oil company?

Thanks.

Why would they get profit if the price of the barrel drops? Wouldn't it be the other way around and actually lose money? I mean if the price dropped, then lots of people would buy for CHEAP, and then the government can't buy anymore, so aren't they like doomed forever?

But if it effected anyone, it would probably effect the government and the people of India, it wouldn't effect the oil companies. Since they are the one's buying and selling (they get the money from the government?), how would it effect them? Unless India has it so that the companies are responsible for the money..

 

[Akuma]

It sounds to me as if some corruption is going on..

Unfortunately it looks like the oil companies have made a strong presence over there as well, and unless the people step up and try to push for an alternate energy source the situation could just get worse.