High Crude Prices Prevent Progress On Deregulation

摘要

BMI View: Progress on deregulating diesel prices would undoubtedly boost the appeal of ONGC and Indian Oil to investors, but rising international crude prices are restricting the government's room to manoeuvre as it focuses on keeping infation in check. The steady rise in global crude prices during the second half of 2010 has stalled the Indian government's plans to deregulate diesel prices, according to a statement by Oil Secretary S. Sundareshan on December 1. Speaking to Reuters on the sidelines of a conference, Sundareshan said that it was 'extremely diffcult for the government to pass on the entire burden' of higher crude prices to consumers and that, while the prices of other fuels had been freed from state control, diesel would have to wait.