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Government can't take Credit for reduction in Oil pricing

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Government can't take Credit for reduction in Oil pricing

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  Published : Wednesday, 18 February, 2015 10:15 AM

After having cleared cut-off scores at MBA Institute, you will be invited for Group Discussion and now it is must for you to practice with variety of GD topics.
 
Read and develop points for discussion and make sure that you are concluding with conviction

Read GD Topic:

Government can't take Credit for reduction in Oil pricing

Time duration= 20 minutes

Number of participants= 5

Gurpreet Singh
 
The current BJP Government  at the Centre can certainly not take credit for reduction in Oil pricing. In fact, prices of oil as per barrel have fallen across the world. From a high of $110, it has now come down to almost $45 per barrel. Naturally the effects of the same will be faced across the world. To take credit for this reduction is definitely wrong on behalf of the Central Govt. and I do not support this move.

Chaman Lal

I agree with my colleague Gurpreet that reduction of oil prices is not just in India but across the world, for which the Central Govt. cannot be held responsible. However, what falls in BJP’s favour here is that this reduction has a lot of potential in boosting the economy. Manufacturing sectors can now increase their outputs and earn greater revenues, as they are the biggest consumers of oil. Though direct tax benefits can be passed to the consumers in countries such as India and America, consumers of countries such as Russia are likely to suffer, unless crude prices rise again.

Suman Thakral

I have a slightly different take on the entire issue of oil pricing. I feel that the Indian Government can take credit for price reduction, but not solely. Let me explain why- this is a time when the entire geo-political situation of the world is going through a change. China has become more democratic than communist, Russia now has Putin who is willing to change the way the world views it, and of course, India has witnessed the resurgence of the BJP which has surprisingly obtained the single largest majority. As a result of these, oil pricing has definitely been impacted. Between OPEC and the countries, there are mediators as well, just like in the vegetable market.

Jiah Alvarez

Where will companies such as Shell and British Petroleum go if prices of oil keep falling like this? Don’t you think they may just stop production and create an artificial scarcity of oil if unable to receive profits? Reduction of oil prices may be a blessing in disguise, but only to consumers in some parts of the world, not all. Credit for this cannot be given to India, but to Middle Eastern countries where bulk of oil is produced.

Mudassar Khan

Decrease in oil prices has directly stemmed from a drop in demand. Funding in emerging markets has decreased, which has indirectly also reduced the demand for oil. As a majority of the world countries are in debt at present, the reduction in oil pricing will only help meet the existing demand. Once again, the credit for this cannot be given to the Indian Govt.

Conclusion

By and large, most of the participants feel that reduction in oil pricing has nothing to do with contribution from the new Central Govt. In the current situation, it is a blessing in disguise since vehicle owners were generally suffering for the past several months. Apart from this, the Indian manufacturing sector will also receive a much needed boost, which will be bolstered by industry-friendly policies.

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