The government today said it is hopeful that the rally in crude oil prices due to the ongoing political turmoil in Middle East and North Africa region will be short-lived. Chief Economic Advisor Kaushik Basu said, there is expectation that crude oil prices are going to go down. Crude prices, which has become a big concern for the government fighting inflation, softened to about 104 dollars a barrel on the New York Mercantile Exchange after touching 107 dollars a barrel, its highest level since September 2008. While pointing out that rising crude price in international market was indeed a concern for the government, Basu expressed the hope that the rise driven by political problems in the Middle-East will be short-lived. However, he added, India's growth could be impacted if the crude oil prices rise to 130-140 dollars a barrel and remain there for sustained period of time.
News On AIR | March 9, 2011 5:25 PM
Rally in crude oil prices may be short-lived:Basu