'Fuel costlier in Ram's India than Sita's Nepal & Ravan's Lanka?'; Petroleum Min replies

The Opposition on Wednesday raised the issue of rising fuel prices in the Rajya Sabha, posing an interesting question before Petroleum and Natural Gas Minister Dharmendra Pradhan. 

During the Question Hour in the Parliament, Samajwadi Party MP Vishambhar Prasad Nishad asked the Minister why the price of fuel was higher in Ram’s India, compared to Sita’s Nepal and Ravana's Sri Lanka? To this, Pradhan responded saying that fuel prices cannot be compared between the countries due to its varied consumption rate. 

The Minister further quoted the price of kerosene in India, which is ₹32 per litre whereas it is ₹59 per litre in Nepal and ₹57 per litre in Lanka, as it is a mass-consumption commodity there.

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Discussing the issue further, Congress MP KC Venugopal pointed out that the government has increased the excise duty on petrol and diesel, which has led to a spike in prices. Responding to the claim, Pradhan said retail pump rates are governed by international prices as India is 85% dependent on imports for meeting its need.

"When the international price of crude oil is higher, we have to increase the prices and when the international price is lower, we have to decrease the prices here too. This is a market mechanism which is followed by oil marketing companies. We have given the freedom to them," he said.

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Fuel prices record all-time high

The Opposition questions came after a record high in fuel prices was witnessed this week, especially in the four top metros, where petrol cost more than ₹85 a litre. Petrol prices have seen an increase by ₹6 per litre in three months in the three cities, while Mumbai has seen a spike in diesel prices.

Both central and state governments rely heavily on collections from taxes on these products for meeting their developmental and welfare priorities, the Minister said. 

"They need some resources... (and) this (taxing petrol and diesel) has been a proven and substantial route by all the governments, whether the state governments or the central government," he added.

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The current rally in fuel prices is because crude oil prices have touched $61 per barrel mark for the first time in more than a year. Taxes make up for over 61% of retail petrol price while they constitute more than 56% of diesel pump rates. 

While the central government has raised excise duty, states too have raised value-added tax (VAT), the minister said. "So, both the states and the central government are raising taxes according to their developmental needs."

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