Government should reduce petroleum prices, says Dr. Vijay Kalantri

Government of India may urge oil marketing companies (OMCs) to reduce prices of petrol, diesel, kerosene, Aviation Turbine Fuel and other petroleum products, in line with the decline in global crude oil prices, to reduce burden on consumers and industry as petroleum products are critical inputs for manufacturing, agriculture, transportation and other services sector. It may be noted that the global benchmark Brent crude oil price fell to a four-month low of USD 63.21 a barrel recently, while the WTI benchmark price fell below USD 60 mark ($59.79) a barrel.

Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman WTC Mumbai suggested that this is the opportune time to reduce prices of petroleum products by Rs. 20/- as the global crude oil prices are expected to decline further amidst global trade policy uncertainty and fear of impending global economic slowdown. This may bring down inflation, reduce raw material prices and make industries more competitive in the manufacturing sectors and MSMEs.”

AIAI further states that reduction in petroleum prices will reduce the cost of transport, airfare and it will provide much needed cost competitive advantage for Indian goods that are facing higher tariffs in its largest market, USA. Reduction in petroleum prices will also provide relief to the common man.

AIAI further added that the reduction in petroleum products will help pave the way for the Reserve Bank of India to reduce policy Repo Rate by 50bps – 100 bps, which will lower borrowing cost for industries and MSMEs.