New Delhi, Feb 10: Union Petroleum Minister Dharmendra Pradhan on Wednesday said in Rajya Sabha that the prices of petroleum products in the country are governed by international market mechanism.
Replying to a question in the Upper House, Pradhan said, “Petroleum products' prices in our country are governed by international price mechanism. This is a practice in our country since last two decades."
" As we have to import almost 85 per cent of our fuel recruitment from international market, when there is a price hike of petroleum products in the international market we have to go by that pricing mechanism; when the price of crude oil is on up we have to increase the price and when it is sliding down the crude price we usually slide down the prices. This is a market mechanism developed by oil marketing companies we have given freedom to them and it is governing that way,” he added.
Petrol and diesel prices in India have risen again on the back of a surge in global crude prices above US 60 dollar a barrel now.