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Deregulation of oil in India brings bonanza for oil companies


Oil companies are having the best of the time with UPA stable govt in place because if rumours are to be believed in stock market, than it is going to be a reality that government is considering deregulating the oil sector.

2. Deregulation of oil in India means that the oil companies are allowed to fix the prices and govt will not interfere in its pricing. However another rumour in air was that same may be only feasible till the time oil hovers near $75 per barrel.

3. The decision on this aspect is likely by coming six weeks and thus India can hope to see freeing up subsidy to the extent of US$ 20 bn which can be used to augment the long term growth of the country.

4. Remember govt will not let the vote bank go and thus govt will exercise control on kerosene and cooking gas which will help them keep in power.


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