Before the latest revision in prices on January 16, petrol prices were last revised on April 30,2006 when the benchmark North Sea Brent Crude Oil was priced at around 72 dollars a barrel.
The Government is claiming that it did not reduce the price of petrol earlier because after the April 2006 revision the oil prices went up further and it did not increase domestic prices as it had to make up its losses.
However, a look at the price history of Brent crude shows that after April 30, 2006 the prices came down to around 64 dollars by mid June 2006 before rising and momentarily reaching 78 dollars in early August and then falling rapidly below 72 dollars only within two weeks and then continuously falling to reach only 49 dollars by January 15,2007.
It is clear from the above data that the Government's losses if any, between April 2006, and August 2006 would have been very minimal. The latest revision contains only a tiny 7 percent reduction whereas oil prices have reduced by a whooping 32 percent from the April 2006 price of 72 dollars. Sure enough , in the next few days and weeks,the Government functionaries and ruling party politicians will cry hoarse over what a big favour they have done to the masses. In reality, the public has been taken for a ride yet once again.