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The Centre’s move to direct oil marketing companies to lower auto fuel price hampers the confidence of oil companies in investments make in India, according to BP.
Speaking with reporters on the sidelines of the India Energy Forum by CERAWeek, BP Chief Executive Officer, Bob Dudley, said, “The price of fuel is very painful right now. But price controls will not be good for the sector in the long term.”
BP recently tied up with Reliance Industries Ltd to set up fuel retailing outlets in the country. The Centre had earlier this month asked public sector undertaking oil companies to lower the retail price of both auto fuels by ₹1 each.
Despite the directive, the Centre and the companies maintain that petrol and diesel prices are still de-regulated.
“During my meeting with Prime Minister Modi today, there was no comment of going back to the regulated fuel price regime...To remain confident about investments, there should not be price controls.”
Dudley also said that BP’s investments in India had slowed down when the new, lower gas price announced in 2014. “Our investments in India had slowed down in 2014, when an international price for gas was no longer there.”
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