Government to take 'corrective decision' on crude oil prices: Pranab

Finance minister Pranab MukherjeeFinance minister Pranab Mukherjee yesterday said the government would take "corrective decision", taking into confidence all stakeholders, to deal with the impact of rising crude oil prices and the diesel subsidy bill on public finances.

The important question was whether the country could afford to import 100-120 MT of crude if the prices did not drop to a reasonable level, he said, adding, the question was staring the government in the face and  and required to be addressed collectively.

He was replying to queries related to the fiscal deficit and fuel subsidy by industry leaders.

Crude oil prices have been on the rise due to geo-political reasons, including the Iran situation, and earlier this month had touched a high of $125 a barrel .

Mukherjee added there were various suggestions the government was working on and it would have to address the issues and bring all stakeholders on board to take corrective action.

The government has refrained from hiking the prices of diesel, kerosene and cooking gas even as global crude oil prices were witnessing a sharp rise.