New Delhi, February 02: Voicing concern over world oil prices touching a 28-month high of USD 102 a barrel, Finance Minister Pranab Mukherjee today said the government is watching the situation closely, as he promised to “take care” of its impact on domestic retail fuel prices.
“Unfortunately, developments in the Middle East and its impact on the Arab world is causing uncertainty about (oil) production (and) about (its) availability. We are watching the situation (closely),” Mukherjee told reporters here.
The spike in global rates has meant that the gap between domestic retail fuel price and their cost of production has widened, necessitating action – either by way of price increase or hike in government subsidy.
Diesel is currently being sold at a loss of Rs 9.23 per litre while every 14.2-kg cylinder of domestic LPG is underpriced by Rs 356.07.
–Agencies