We’ll take care of oil prices: Pranab

Finance minister Pranab Mukherjee has promised to take care of the impact of the Egypt-triggered surge in global oil prices — that reached a 28-month high of $102 a barrel — on domestic retail fuel prices.

Finance minister Pranab Mukherjee has promised to take care of the impact of the Egypt-triggered surge in global oil prices — that reached a 28-month high of $102 a barrel — on domestic retail fuel prices.

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He said on Wednesday the government was keeping a close watch on crude price movements. The political tension in Egypt is impacting the price front, which oil companies think can lead to another petrol price hike.

After the domestic oil price decontrol, petrol prices depend on global prices, while the government fixes diesel prices. On January 15, oil firms increased petrol prices by R2.50 a litre, the second hike after December 15.

Oil company officials said the Egypt situation could also hit the 1.8 million barrel daily supply of oil.

Mukherjee said India managed the situation when crude prices touched a record high of $ 147 a barrel in July 2008. “The government will take care of it (now as well).”

The finance minister, however, did not elaborate on how the situation would be managed.