No need for knee-jerk reaction on crude oil price, says Jaitley

Finance Minister Arun Jaitley is hopeful that the current level of crude oil price and the weakening rupee will moderate soon. The rise in crude price is a temporary phenomenon due to artificial shortages and the prevailing geopolitical situation, he said.

Speaking to reporters after the Cabinet meeting, Jaitley said, “There is no straight-line movement of oil. Last two days there was some moderation. There is no need for any knee-jerk reaction.”

When asked whether the government will look at any policy changes to deal with the crude price and its impact on the economy, he said, “Policy formation is never a rigid process.”

Jaitley said the Centre is keeping a watch on the movement of the fuel price and the weakening of the Indian currency.

But these cannot be attributed to the present functioning of the Indian economy.

He said, “No domestic reasons can be attributed to this and the reasons for dollar strengthening are global. The dollar has strengthened against other currencies too. There are certain policies of the US that impact us since we are net buyers of oil. We are not in trade war business. If neighbouring countries are devaluing, it will have an impact. Turkey has had an impact on us. This fluctuation will come down.”

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