India has said it will follow up its suggestion on having a price band for crude oil once the producing nations reflect on the idea, even as it asked them to step up oil output.
"It (price band) is an idea that I have mooted in the earlier IMF meetings and it is the first time I am addressing an oil ministerial meeting. So let them reflect on that, we will follow it up," Finance Minister Chidambaram told news channel NDTV before leaving for India.
Explaining his proposal mooted at the Energy Ministers' meeting here, the finance minister said the suggestion is that producing countries will assure the world that prices will not rise above a level and consuming countries will assure the world that prices will not fall below a level, between which prices can be determined by the market forces.
Crude oil prices are not under India's control, the Finance Minister said, adding that the prices will cool down only if producing countries increase supply and the countries concerned regulate over-the-counter trade or futures trading in oil.
"In August, 2007, it (crude prices) was 70 dollars a barrel and a few days ago it has touched 140 dollars a barrel... Those are not under India's control... So we have urged producing countries to increase supply. We have urged countries where these financial transactions are taking place to step in and regulate these transactions," he said.
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