Tarun Kapoor on BPCL privatisation, ethanol blending target, oil strategic reserves
Fuel price has gone up because the international price for crude has shot up, the fuel price in India is linked to the international product price. We are working on increasing the reserves here in India by PPP, says Tarun Kapoor, Oil Secretary.
Why are the prices of fuels rising in India?
See, fuel price has gone up because the international price for crude has shot up, the fuel price in India is linked to the international product price and the price of petrol internationally went up to almost $89-$90, now it has come down slightly. The international price of petrol and diesel used to be almost equal but now in the recent past– what we have seen is that the price of petrol has become much higher than the price of diesel internationally. The oil companies fixed their price based on the product price and therefore the price of petrol has been high and now it is a little bit stable for the last few days, but then we have these 15-day rolling average system. We expect that if the international price cools down a little bit, then things would be better.
