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The Central Government volte face on revisiting fuel prices in the wake of a substantial reduction in crude oil prices over the last few months is on expected lines. The reasons attributed by the Government for its unwillingness to cut fuel prices are the huge subsidies provided to the sector and the need for loss-making oil PSUs to break even before looking at a reduction in petrol prices.

However, the fact remains that the Government has gone back on the earlier assurances given by it at the time of the last price hike that petrol prices will be brought down in the event of significant reduction in the price of crude oil. Is it not better to effect at least a small reduction in the fuel prices now so as to give relief to the common man and to explore alternative avenues for revitalising the oil PSUs?

N. Vijayagopalan Bangalore

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