G—20 to call Energy Ministers’ meet on rising oil prices

Concerned over volatile crude oil prices impacting the growth process, G—20 leaders have decided to call a meeting of the Energy Ministers of member countries to address the issue.

“It has been decided that there will be a meeting of the energy ministers to address the problem of energy prices,” Indian Finance Minister, Mr Pranab Mukherjee, said after the conclusion of a meeting of G—20 finance ministers and central bank governors.

Crude oil prices have crossed $ 100 a barrel in the international market. The high crude oil prices adversely impact oil importing nations, fuelling inflation and pushing up prices of other commodities.

“There should be international cooperation to prevent volatility of commodity prices,” Mr Mukherjee said.

In view of the spurt in crude prices, oil marketing companies (OMCs) in India had raised the price of petrol by about Rs 2.5 per litre last month.

There is also pressure on the Indian government to raise the prices of diesel in line with rising international prices.

The government, however, has been resisting such a move as it will adversely impact inflation.

The G—20, which is currently under the presidency of France, has already decided to host a meeting of the Agriculture Ministers in May to address the issue of rising food prices.

The date for the meeting of the Energy Ministers of the G—20 nations will be decided later on.

According to a recent World Bank report, rising commodity prices have already pushed 44 million people into poverty in developing countries.

“No country can address the problem of food inflation unless there is a concerted global effort,” Mr Mukherjee said, adding that massive funds were needed to promote the growth of agriculture and allied sectors.

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