No need for "knee-jerk" reaction due to high crude oil prices, says Jaitley

Finance Minister Arun Jaitley on Wednesday said that there was no need for a "knee-jerk" reaction due to high prices of global crude oil.

"There is no straight-line movement of global crude oil prices," Jaitley said at a media briefing after the meeting of the Union Cabinet.

According to Jaitley, crude oil prices edged higher in April and May whereas they calmed down in June and July.

"As I am saying these are not situations which merit knee-jerk and panic reaction. There is no straight-line movement in global oil prices," the minister said.

When asked about the country's preparations to deal with an upsurge in global crude oil prices, Jaitley at a press briefing here said: "Policy formulation is never a rigid process."

Recently, geopolitical factors such as trade wars fears, upcoming Iran sanctions and conflicts in the Middle East along with supply-side constraints have led to a sharp increase in global crude oil prices.

The rise in global crude oil prices pushes the domestic cost of petrol and diesel higher as the country is a net importer of crude oil.