ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Logic of the Expert Group Report on Petroleum Prices

The article explains the logic behind the Parikh Committee recommendation on petroleum prices. Based on considerations of who would bear what burden, the recommendations would lead to a viable and sustainable pricing policy, which would be workable over a wide range of international oil prices, which would meet the various objectives of the government, and which would limit the fiscal burden on the government and keep the domestic oil industry financially healthy and competitive.


The Logic of the Expert Group

subsidies. The OMCs sell them to the consumers at government-determined prices.

Report on Petroleum Prices

However, they purchase them from refineries at import parity prices or at a


weighted average of import parity and


export parity prices for some products.

Kirit S Parikh

The difference between the cost price and

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