The night cap idea was a decision taken in haste and was rejected by the Prime Minister. Now, the oil ministry is supposed to start a petroleum conservation programme soon.
The widening current account deficit of the country and its agenda of going on with social security programmes despite heavy economic burdens has till now build a bad image of the government in the eyes of its own public and the world as well.
If quirky quotes from the prime minister were not much, petroleum minister Veerappa Moily issued a statement yesterday about putting a night cap on the fuel purchase by shutting down the pumps.
However, his idea of buying crude oil from Iran surpassing US ire is being seen as a bold statement.
In his note to the PM, Moily tried to present his ideas about reducing the CAD by importing oil from Iran to save around $8.5 billion on foreign exchange as India pays Tehran in Rupees unlike other countries. This calls for US ire because Iran faces US and EU sanctions because of its nuclear programme. But it does seem like a saving idea.
Although the price of petrol and diesel were raised just two days back, but there are chances that they may increase further. It is likely that the government will increase fuel prices again as soon as current parliamentary session is over. This may be received as an unpopular move, but it surely will decrease the subsidy burden and CAD.
The night cap idea was a decision taken in haste and was rejected by the Prime Minister. Now, the oil ministry is supposed to start a petroleum conservation programme soon.
We don’t know whether the idea of importing extra 11 million tonnes will do good to the country in international order, but we do know the move is right.
Assuming that the food bill has done no good till now to the economy, maybe the time is to take an extra risk by letting Moily implement his programme.
