Industry Odisha Bureau, April 15: Since uncertainty looms large over the uninterrupted energy supply chain as well as crude oil price hike triggered by the ongoing West Asia crisis, the Government of India (GoI) is reportedly contemplating to create a financial or cash buffer, especially, for petrol, diesel and Liquefied Petroleum Gas (LPG/cooking gas) so that the supply disruptions along with the global price volatility could be managed.
Experts opine that the financial/cash buffer would be akin to the “Price Stabilization Fund (PSF) concept created in the fiscal year (FY) 2015 that aids inflation management in select critical agricultural commodities”.
Sources informed that such a plan of financial/cash buffer for managing the current energy crisis was put forth for discussion at a recent meeting convened and graced by the empowered group of Secretaries hailing from the GoI’s ministries of Petroleum & Natural Gas and Consumer Affairs, Food & Public Distribution.
Sources also informed that the incumbent Union Government is now cogitating over the pros and cons of the proposal earnestly, and above all the requisite fund allocation, much prior to the situation goes awry.
Sources further added that the mooted PSF for tackling energy crisis would make the Union Government “enter into contracts with the oil refiners and oil marketing companies to create a buffer reserve of petrol, diesel and LPG in addition to the 5.3 million metric tonnes strategic petroleum reserves to store crude oil so that they could help in cooling
Notably, “A financial/cash buffer is a dedicated, accessible stash of cash or liquid assets set aside to cover unexpected expenses, emergencies, or sudden income drops, preventing reliance on high-interest debt. It acts as a safety net”.
