The public sector oil companies in India are free to go ahead with the revision of the oil prices as and when the prices of the international crude oil changes. It has been seen that this change is mostly in the upward direction. Interestingly, it is the Indian Government which has the major stake in the public sector oil companies.
On the request of the Indian Government, the oil price hike was upheld as there were polls in some states. The hike was upheld since January. However, now as the various works in regards with the polls will come to an end until the middle of May, and things settling down to normalcy, the issue of price hike had to come up some time or the other.
There was a very important decision taken in June 2010, when the government excused itself from being involved in fixing the petrol prices. The repercussions were seen when the prices were changed as many as seven times. However, it was a change taken into account according to the international pricing of the fuel.
There is no doubt that the increase in the prices of the fuel will fill the coffers of the government, at the same time, it will put a lot of pressure on the pockets of the common consumers. As of now, one barrel costs $110 in the international market.
The hint of the price hike was also given by the Indian Oil Corporation which said that the wait is only as long as the end of the assembly polls in the five states.
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