The Government is committed to provide petroleum products at reasonable prices to consumers. This is while maintaining the financial health of the public sector oil retailers, said Mr S Jaipal Reddy, Minister of Petroleum and Natural Gas.
Addressing the Consultative Committee of Members of Parliament attached to his ministry here on Friday, Mr Reddy said international oil prices have been rising for reasons beyond obvious control.
After the extreme volatility of crude prices in 2008-09, the international prices of crude oil have consistently risen in the recent past. The average price of the Indian basket of crude oil, which was $ 69.76 a barrel in 2009-10, is hovering around $ 112 dollar a barrel in the current year.
“The Government is committed not only to protect the interest of the common man, but also to make available petroleum products of right quality at reasonable prices to consumers,” he said.
At the same time, it needs to be appreciated that the long-term energy security of the country depends on the financial health of the oil marketing companies, he said adding that “If their financial health deteriorates on account of the price under-recoveries, their ability to discharge their assigned task of supplying the entire country with petroleum products would suffer.”