Petrol product prices to rise on crude hike: C Rangarajan

On the back of the unending volatility crated by the boiling crude oil prices, C Rangarajan, chairman at Economic Advisor Council to PM, said that issues in West Asia have become a major concern due to the hike in crude oil prices. If the crude price remains above USD 100 per barrel, then an action is required, he feels.

He also added that if the West Asia crisis continues, then further hike in the crude oil prices will lead to an increase in petrol product prices and the Import Bill will go up as well. On the positive side, he said that the inflation numbers of March may reflect fall in vegetable prices, which are likely to go down. "Therefore, if the crude oil prices remain above USD 100/bbl for quite sometime then it will require some action. The impact is that the import bill will go up. Unless there is some adjustment in the petroleum prices domestically, the subsidy burden will enormously increase," he added. Also watch the accompanying video.