Reduction in fuel prices unfair: Asian Development Bank official

January 14th, 2009 - 3:21 pm ICT by IANS  

New Delhi, Jan 14 (IANS) A senior Asian Development Bank (ADB) official has questioned the Indian government’s policy decision to reduce retail fuel prices, but preventing oil companies from charging market rates when global prices were at a peak.”Is it right that when oil prices were at a peak, companies were not allowed to charge the appropriate price. I am just posing a policy question,” ADB executive director Ashok Kumar Lahiri told reporters on the sidelines of Petrotech 2009, an international conference on oil and gas, here Wednesday.

When international prices were hovering around $140 per barrel of crude last June, the government had increased prices of petrol and diesel by Rs.5 and Rs.3 per litre, respectively.

After crude prices fell by over $100 per barrel, the government reduced the price of petrol and diesel by Rs.5 and Rs.2 per litre last month. Petroleum Minister Murli Deora last week said there could be another price cut shortly. It is now expected to be announced Thursday.

Lahiri, however, said he expected oil prices to increase in the medium to long term, with an imminent shortfall in world supply.

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