Well privatisation and deregulation can be very fancy words, but with dire implications. Many voices have been asking for de-regulation of oil prices, and this is what we get. De-regulation gives a free hand to the Oil Cos. to fix prices according to the international market prices, without any government intervention.
So the question arises, why no govt. intervention? Simple: because the govt decided last year in June '10 that the Petrol prices will be de-regulated/de-controlled,which means least amount of interference from the regulators side and the govt's side.
Therefore, when ever you will see crude oil prices going up, there will be a price rise in fuel in India. No debates in the parliament, no arguments like before, oil companies will simply raise prices. Enjoy the benefits of a near 'FREE MARKET' ECONOMY guys. How else can you explain the price of per litre fuel @Rs.50 when the crude prices were $150/barrel and Rs.62+ when the crude oil price is today at $90.
Government still has a trick up its sleeve.
The duty, the cess, and other taxes levied on the Petroleum Products are the other culprits.
Crude prices can be fluctuating , but the tax component is fixed and that's the differentiating factor when we compare the prices even with neighbouring countries.
tikoo ban gaya economist.
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