Dharmendra Pradhan claims COVID & Intl markets behind fuel price hike: 'FM can find a way'

As anger against rising fuel prices rises, Union Petroleum Minister Dharmendra Pradhan on Sunday, explained two main reasons for the unabated rise in petrol and diesel. Pradhan explained that the international reduction in fuel prices and the COVID-19 pandemic was the reason for the rise in fuel prices across India, passing the buck to Finance Minister Nirmala Sitharaman to find a solution. Petrol and diesel prices continue to rise for the 13th consecutive day.

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Dharmendra Pradhan: 'Two reasons for fuel prices'

Explaining the reason for fuel price rise, he said, "There are two main reasons behind fuel price rise. The international market has reduced fuel production & manufacturing countries are producing less fuel to gain more profit. We have continuously been urging the OPEC & OPEC plus countries that it should not happen. Another reason is COVID."

He added, "For developmental work, Centre & state govts collect tax. Spending on development work will generate more jobs. Govt has increased its investment & 34% more capital spending will be done in this budget: Union Petroleum Minister. State govts will also increase spending. This is why we need this tax but there is also the need for balance. I believe Finance Minister can find a way."

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FM: 'Must discuss with states'

On Saturday, Nirmala Sitharaman opined that fuel prices' rise is not completely in the Centre's hands and it needs to be discussed with the states. The Minister said that the production forecast by OPEC countries is also likely to come down, raising more concerns on the rise in fuel prices. "Government is not in control of the price of oil, it has been technically freed. Oil companies import, refine and sell crude oil," she added.

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Petrol prices rise

On Sunday, petrol prices hit Rs 97 at Mumbai while it cost Rs 90.58 in Delhi. Meanwhile, Diesel hit Rs 88.06 in Mumbai and Rs 80.97. Congress-ruled states like Chhatisgarh, Rajasthan and several other states like Madhya Pradesh, Assam, Kerala have witnessed strikes and protests regarding the fuel price rise. Congress has demanded a nationwide slash in Central excise duty over fuel.

On Wednesday, while addressing an online event to inaugurate oil and gas projects in poll-bound Tamil Nadu, Prime Minister Narendra Modi said the middle-class would not have been burdened if the previous governments had focussed energy import dependence of the country. PM also informed that India imported over 85% of its oil needs in the 2019-20 financial year and nearly 53% of its gas requirement. Oil Minister Dharmendra Pradhan had told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs.  Central and state taxes make up for over 61 per cent of the retail selling price of petrol and about 56 per cent of diesel.

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