India's petrol & diesel rates high due to global crude rates & demand destruction: Pradhan

Union Minister for Petroleum and Natural Gas and Steel Dharmendra Prhan on Tuesday said that hike in price of crude oil in global markets is reason that rates of petrol and diesel have risen to unprecedented highs. He referred to queries raised by opposition on tax that is levied on fuel and said that revenue and growth of a nation are dependent on tax collection, as it is used for welfare of masses.

Prhan pointed that "International markets have reduced fuel production and manufacturing countries are producing less fuel to gain more profit. This is also one of reasons that consumer countries are suffering. We have been appealing to Organisation for Petroleum manufacturing Countries (OPEC) to help stop this process. We hope re will be a change."

" demand destruction that has happened due to coronavirus has majorly impacted leing oil supplying nations. oil supplying countries h promised that supply cycle will rmalise by January this year. However, y are still unstable and that has led to such a situation where fuel prices have hit a record high in India and or countries," Prhan ded.

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He n stressed that since NDA government since day one of its governance has been appealing that petroleum sector must be taken under GST. "If petrol is taken under GST, sector will grow and consumers will be ultimately benefitted. This is a topic that GST council is mulling on that all states are a part of," Prhan detailed.

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Speaking on projects for oil exploration in rth-Eastern states, he said that while Assam, Nagaland, Arunachal Presh, Tripura, and Mizoram have ample oil, it is t sufficient. "After PM Modi took charge in 2014, we planned to have rth Eastern Hydro Carbon Vision-2030 that is aimed at exploring ways to establish infrastructure for extraction of oil and generation of gas," Prhan said. He ded that oil exploration will be ramped up in rast and infrastructure for this purpose will include pipelines, gas pipelines, and LPG pipelines. "If se projects pick pace in rast, refining capacity will also get a boost, in turn, enhancing oil and gas production."

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He furr referred to LPG and said that under 2030 vision for rast, "we have alrey allotted projects worth Rs 50,000-55,000 crore. PM Modi on Monday dedicated Rs 3,000 crore for three oil and gas projects in Assam, that will help generate employment for locals and has benefitted government in terms of revenue."

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