India's oil and gas sector faces a critical juncture as geopolitical tensions create unprecedented supply shocks. The International Energy Agency warns this crisis exceeds the combined impact of 1970s oil shocks and Europe's 2022 energy crisis. To build resilience, India must embrace market-oriented reforms rather than relying solely on central planning. Three key measures stand out: extend GST coverage to all petroleum products to enable input tax credits and reduce business costs, free retail fuel pricing from government control to allow market forces to optimize supply and demand, and privatize state-run oil marketing companies except one to introduce competitive efficiency. Currently, Indian Oil, Hindustan Petroleum, and Bharat Petroleum dominate pricing through central command rather than market mechanisms.
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