Daijiworld Media Network – Mangalore (MM/RD)
Mangalore, Nov 13: As the oil prices in the international market are constantly increasing over the week, the union Planning Commission has advised the centre, to hike the oil prices in the domestic market.
Montek Singh Ahluvalia, deputy chairman of Planning Commission has already cleared the proposal to hike the oil prices. Moreover, owing to the increase in the prices of crude oil, the public sector oil companies in India are incurring huge losses. Hence, hike in the oil price is necessary, he informed.
While preparing the draft of 11th Five Year Plan, the crude oil per barrel was US $ 80. However, now it has touched the mark of US $ 100 per barrel. Moreover, one would not know, how far the oil prices would reach in the coming days, he expressed concern.
If the government hikes oil price, the inflation rate would steadily go up. At the same time, the demand for oil in the international market would find slight decrease besides the country would face set backs for economic development, he cautioned.