Govt need not respond to daily, weekly changes in oil prices, says Niti Aayog

Govt need not respond to daily, weekly changes in oil prices, says Niti Aayog

FPJ BureauUpdated: Wednesday, May 29, 2019, 06:28 AM IST
article-image

New Delhi : Niti Aayog Vice Chairman Rajiv Kumar said on Wednesday the government need not respond to daily or weekly changes in the oil prices as they declined in July after showing northward movement a month ago.

Crude oil has gained $7 a barrel in a fortnight, driven by fears that the US sanctions on Iran will likely contract supplies.

“Weekly, daily or periodic changes in global oil and commodity prices are to be observed but don’t necessarily have to be responded.

“The prices rose in June but then declined in July. Is not it? Same situation may happen again, therefore policy cannot be a knee-jerk reaction to periodic events in the markets,” Kumar said.

Petrol and diesel prices in the country have been rising owing to a sharp rise in global crude oil rates.

Replying to a question on the reasons for economic slowdown in 2016-17, he said it was not exclusively on account of demonetisation, there were also other factors responsible for it.

“Simple point, I am making is that the slowdown in economic activity during 2016-17 was not a result exclusively of demonetisation, but also a result of the declining trend in the economic activities which started from the last quarter of 2015-16,” he said. Almost half of the fuel price is made up of taxes.

RECENT STORIES

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

Game-Changing Alliance: Ambani's Reliance Ventures Into Adani's Power For The First Time; Acquires...

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

SRM Contractors IPO Subscribed 86.57 Times On Last Day Of Bidding

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu..."; Here's How To Save...

Tax-Saving Tip From Zerodha CEO Nithin Kamath: 'If You're Married And Hindu...

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

Holy Cities Like Ayodhya, Varanasi Attracting Big Retail Brands: Report

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...

A Big Relief For Byju's: NCLT Rejects Investor Plea To Stay Byju's Rights Issue EGM On March 29 Amid...