Govt keen to decontrol prices of diesel and LPG: Pranab
Pilot projects for transfer of a direct cash subsidy will be launched in seven states — Tamil Nadu, Assam, Maharashtra, Haryana, Delhi, Rajasthan and Orissa — from October, according to the roadmap suggested by the Unique Identification Authority of India (UIDAI).
On the possibility of international crude prices moderating in the short run, Mukherjee said it will depend on recovery in Europe and the US and the decision of the Organisation of Petroleum Exporting Country (OPEC) to raise production.
"It is difficult to say right now because it depends on two things — how quickly European and US recovery (takes place)… If the recovery is quick then there will be more demand for oil. In that case prices may firm up", he added.
On the other hand, Mukherjee said, "if they (OPEC) again decide not to enhance the production then it will have its adverse impact (on oil prices)".
The third factor was the US government`s decision to offload oil, Mukherjee said, adding, "if they release from their strategic reserves some more, then very limited easing could take place".
In order to cool prices, the US government released about one million barrel of oil per day in June.