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9 Jun 2009

Is Oil Deregulatin going to Take Place?

1. We all are waiting with a bated breath that oil sector deregulation will take place in India; however same at times appears remote as since the time this issue has come up; the oil has been firming up and thus parties are worried about their vote bank. it has reached the US$ 67 per barrel which is a threshold limit for the govt.

2. Now if the deregulation goes through than the voters will have to bear the price hike and thus deregulation is likely to take a back seat as one of the states and also with one of the government's biggest allies eyeing elections at its home state, price revision could prove counterproductive.

3. Indian oil ministry is also admitting that decontrol of oil prices will take place but its implementation will have to wait. Thus in nut shell one can say that the oil companies may cool down a bit as and when this news becomes public.
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