ET Now: Oil prices in India at retail level are completely decontrolled. If crude prices go higher you will have to pay more and if oil prices go lower, you will have to pay less. The government has really followed this in the true spirit of deregulation as there has been no government intervention whatsoever. So, do you think nervousness that the deregulation process will be stalled because of nearing state-elections and general elections in 2019 is a false belief?
RS Sharma: Well, your apprehension has taken words from me. Markets move by sentiments as you know and as crude prices rise, the apprehension goes up in course of time about whether the government is able to maintain this deregulated scenario or if there would be some sort of a subsidy regime. That is the worry and you know that stress spooks the sentiment about OMCs. There’s just one thing I would like to correct in your briefing; benchmark are not crude prices, benchmark are the product prices and international parity with the product prices which move in tandem with the crude prices. Read More…
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