The Centre has set up a task force of senior government officials to give recommendations on how to manage the rise in prices of petroleum products in India, reported Mint.

Prices of crude oil recently hit a 14-year record and are currently trading above $130 a barrel. For India, which is the world’s second biggest net crude oil importer, the upward trending prices are not only going to put pressure on the government, but also consumers and businesses. India imports nearly 85 percent of its crude requirement and around 55 percent of its natural gas requirement, making it a huge net importer of energy.

While the country has not yet seen a hike in its fuel prices, oil manufacturing companies are expected to hike their prices as the election results are declared.

The task force has been meeting regularly to review the developing situation and devising a way to insulate domestic consumers from increasing energy prices, a government official with knowledge of the matter told Mint.

Petroleum Minister Hardeep Singh Puri added on Tuesday that the price increase would be done keeping the interests of citizens in mind and denied that the government had not yet hiked fuel prices due to the elections in five states of the country.

"Oil prices are determined by global prices. There is a war-like situation in one part of the country. The oil companies will factor that in. We will take decisions in the best interest of our citizens," he said in a press conference.

The task force will not only give recommendations on how to deal with higher fuel prices but also look for ways to set up alternative payment channels in response to many Russian banks being kicked out of the SWIFT information system.

The task force was instituted last month in the immediate aftermath of the Russian invasion of Ukraine and the resultant global sanctions that were placed on Russia. The task force will convey its recommendations to all the relevant ministries and regulators, where upon approval they will be notified by the finance ministry.

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(Edited by : Thomas Abraham)

First Published:Mar 9, 2022 4:06 PM IST