IMF asks government to deregulate oil prices

The International Monetary Fund (IMF) has advised India to deregulate fuel prices, which it said is the best way to deal with the volatility in crude oil prices in the international commodity markets. In India, the government regulates pricing of four sensitive petroleum products and subsidizes state-owned oil marketing companies – Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd. – for their revenue losses or under-recoveries incurred by them on domestic sales of petroleum products. (December 3, 2009)