'All Energy Prices Should Be Deregulated'
Q: As an architect of deregulation in the petroleum sector, are you happy with the government's move towards liberalisation?
A: The government has better knowledge of the economy as a whole and has a good perspective of the hydrocarbon sector. It is better equipped to take a decision than what we, as the team writing Hydrocarbon Perspective:2010 were. The government has now come up with the right solution. In fact, deregulation is now being debated by all members of the oil industry.
Q: Recently the government hiked the prices of almost all petroleum products by 10 to 30 per cent. Do you think the hike was justified?
A: The price hike was inevitable. The government should increase the price of petroleum products for every depreciation in the value of the rupee This is because we are import dependent. Almost 60 per cent of the crude and petroleum products are imported. On an import parity basis, the price hike was expected.
Q: What is the fundamental difference between the recommendations made by the R-group and the suggestions forwarded by the study group headed by you?
A: Please discuss the R-Group with Vijay Kelkar (Secretary, ministry of petroleum and natural gas). I was not present at the last conclusive meeting of the R-group. The thrust of the R-group is the same and they have not gone away from the deregulation factor. However, the basic difference is the way in which deregulation should be done