Is it the angry 'aam admi' on the street that has forced the oil marketing companies to rollback petrol prices or is it sensible economics? The government claims the consumers are benefiting due to the international crude prices falling added by rupee-dollar exchange rates coming down marginally.
Minister of State for Petroleum and Natural Gas RPN Singh said, "Crude oil have come down by $4 and we have passed it on to consumers. Petrol prices are deregulated. You are looking too much into politics."
Mamta Banerjee and her party is claiming victory
Crude prices were at $74 on October 4 and it now hovering around 100 dollars. Even the rupee has just weaken by 10 paisa after appreciating to above 50 per dollar since the last hike.
Just about a week ago oil majors reported losses and they are still incurring estimated 1.3 lakh crore rupees of under recoveries.
The government insist that there is no politics in the petrol price cut but with a furious Mamata and upcoming elections, the UPA has chosen politics over economics, this is the first price cut since petrol prices were deregulated and oil companies will be hoping that they have not lost the freedom to fix prices for ever.
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