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Bengal Minister questions Centre on strategic oil reserves

IANS  |  Kolkata 

Questioning the Centre over strengthening of Indian strategic oil reserves, Amit on Wednesday said that fuel price stabilisation fund could be useful to counter soaring prices.

"In July 2014, the was $104 per barrel which fell by February 2016 to $33.01. has a strategic reserve with the Indian Strategic Reserves Ltd. Why did the Centre not further strengthen the reserves when the crude fell?" he asked.

He said that the US has the strategic reserve structure, with a reserve of about 727 million barrels, started in 1970s during the

said he suspected India's strategic reserve might not be enough to cater for longer period.

"We could also have a possible fuel price stabilisation fund. This can be created when the are low," he said at the Meeting of the

Expressing concern over increasing fuel prices and tumbling value of rupee against the US dollar, said that it is impacting the current account adversely and the Indian economy is hitting 'certain dangerous levels'.

Mitra's comments came a day after announced that her government will decrease tax on petrol and diesel by Re 1 per litre. and Andhra Pradesh, too, have cut taxes on fuel.

Talking about depreciation of rupee, Mitra said that it led to increased import costs and inflationary pressure on the economy.

"We have seen that when there is inflationary pressure, the raises the benchmark interest rate (repo rate)," he said.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 12 2018. 22:20 IST