Indian oil firms to map bigger global footprint

The government would have to do a delicate balancing act as it seeks to thrash out a politically acceptable and economically prudent solution to dangerously high global crude oil prices.

In the immediate future though, the government is unlikely to increase the prices of motor fuels. With the ruling alliance suffering reverses in state elections, the petroleum ministry has decided to evolve a consensus among the allies before considering a marginal increase in the prices of petrol and diesel and a reduction in excise duty.
Analysts, however, are asking the all-important question: how long can India avoid a pass-through of global crude prices into the domestic market?

A targeted GDP growth rate of over 9 per cent implies a four-fold increase in India’s energy requirement over the next 25 years, which is a significant challenge for the country, consulting firm KPMG said in a report on India’s energy outlook recently.

Analysts believe that the coming year could see more Indian public sector oil behemoths acquiring overseas assets as the government grapples to augment supply.

Hindustan Times