Questioning the Centre over strengthening of Indian strategic oil reserves, West Bengal Finance Minister Amit Mitra on Wednesday said that fuel price stabilisation fund could be useful to counter soaring petroleum prices.
"In July 2014, the crude oil price was $104 per barrel which fell by February 2016 to $33.01. India has a strategic reserve with the Indian Strategic Petroleum Reserves Ltd. Why did the Centre not further strengthen the reserves when the crude oil prices fell?" he asked.
Mitra said he suspected India's strategic reserve might not be enough to cater for longer period.
Expressing concern over increasing fuel prices and tumbling value of rupee against the US dollar, Mitra 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 Chief Minister Mamata Banerjee announced that her government will decrease tax on petrol and diesel by Re 1 per litre. Rajasthan 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.
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