The fortnight’s burning question. Do you think the cut in petroleum prices is a wise decision and can be sustained?
Yes. Sarthak Behuria, Chairman, Indian Oil Corporation
One was expecting a drop in domestic petroleum prices for quite some time. As far as oil marketing companies (OMCs) are concerned, the finance ministry has already indicated that depending upon the third quarter results of OMCs, they will come up with a comprehensive rescue package. It is expected that there will be a second round of price cut in the near future.
Yes. D.K. Joshi, Principal Economist, CRISIL
I think the decision will help the government tame the inflation. With crude oil prices trading below $45 a barrel, the squeeze on OMCs margins has also eased significantly.
Maybe. Chandrajit Banerjee, Director General, CII
Whether a price cut was required or not is entirely dependent upon how efficiently the government deals with the burden that entails such a decision. As of now, the measure seems to pose serious challenges for the exchequer. Merely reducing the prices in tandem with the global crude prices is not going to solve our energy problems. We need a totally different mechanism to address such issues.
—Compiled by Manu Kaushik