Petrol and diesel prices across the nation will be revised when the declining international crude oil prices are likely to remain at steady lower levels, NITI Aayog Vice Chairman Ashok Lahiri said on Sunday.
Lahiri, however, cautioned that fuel prices would not be adjusted frequently in response to fluctuations in global crude oil prices.
“It (fuel prices) will definitely be revised when it is clear that crude oil prices have declined and are going to remain at that level. But we will not adjust the price everyday in tune with the fluctuating crude oil prices,” Lahiri told The Statesman on Sunday.
His remarks came amid the ongoing West Asia crisis and uncertainty over the situation around the Strait of Hormuz, which could have implications for global energy supplies and crude oil prices.
Asked about the potential impact of the crisis on India, Lahiri said the situation could be viewed from both a short-term and medium- to long-term perspective, depending on how long the crisis lasts.
“The medium or long term depends on whether the West Asia crisis or Hormuz crisis will last for a few months or for a few years. It’s like if you have fever, you’d like to know whether it is influenza, or typhoid, or jaundice. So, it’s difficult to say how the Hormuz crisis will unfold,” he said.
Lahiri said the government had taken steps to deal with the situation, including increasing energy efficiency and diversifying the country’s energy sources.
“One is to increase energy efficiency so that we need less petrol or diesel to run our cars, our transport system. The second is diversifying our energy sources,” he said.
The prices of petrol and diesel in the city stood at Rs 114.51 and Rs 99.82 on Sunday. In comparison the price of a barrel of crude oil hovered around Rs 8,616.
On the West Bengal government’s single-window clearance platform for investment proposals of over Rs 100 crore, Lahiri termed it a “very welcome initiative”, but stressed the need for continuous monitoring.
“When you launch any initiative you have to do mid-term corrections…you have to make constant improvement and make sure that it’s delivering what it was supposed to deliver,” he said.
Lahiri spoke on the sidelines of the inauguration of AIC Techno, West Bengal’s first Atal Incubation Centre, established under the Atal Innovation Mission of NITI Aayog, at Techno India University in Kolkata.
The NITI Aayog Vice Chairman has previously served as the Chief Economic Adviser to the Government of India, Executive Director at the Asian Development Bank and Director of the National Institute of Public Finance and Policy. He has also served on the Fifteenth Finance Commission and held several other senior positions in public policy and economic institutions.