Global oil prices to stabilise at $30-35: Ambani

By siliconindia staff writer   |   Wednesday, 01 September 2004, 19:30 IST
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NEW DELHI: Projecting that global oil prices would stabilise at around $30-35 and help ease pressures on consumers, Reliance Industries chairman Mukesh Ambani on Wednesday sought deregulation of natural gas, terming it as an alternate fuel in the medium term. "We believe deregulation in the gas sector will unleash benefits to consumers. Government is actively considering deregulating gas, which is presently under the administered price mechanism," he told a private TV channel. "We think the deregulation will come in about six to eight months", Ambani, who is here to attend an automobile convention, said. Asked on the price structuring in the petrochemical sector, he said it rides on the back of global oil prices but "we see them stabilising at about $30 to $35." Supporting alternative fuel choices in the country, Ambani said: "we should look at alternative fuels that alleviate cost factors and ease pressure on the consumers." "We at Reliance are also working on alternative fuels like bio-diesel and others so that the burden on consumer remains within limits," he said suggesting medium term strategies in the sector. Pitching for common carrier principle for gas pipeline, he asked the Government to promote it. "We have a common carrier principle and it is the right way to go." On the petroleum prices in India, he said it is a global phenomenon but a demand-supply parity had now been established in terms of demand for liquid fuel. "We have ample supplies and unless its unusually affected, its not going to rise anymore."