Pradhan Says Govt Keeping Close Eye On Oil Prices

Pradhan Says Govt Keeping Close Eye On Oil Prices

With petrol and diesel prices touching multi-year highs, Oil Minister Dharmendra Pradhan today said the government is keeping a close eye on international prices but said there is no going back on free market pricing.

He said consumers will benefit if petrol and diesel are brought under Goods and Services Tax (GST) regime at the earliest.

Petrol price today hit a four-year high of Rs 73.83 a litre, while diesel rates touched an all-time high of Rs 64.69 in the national capital on rising international oil rates.

“India needs market pricing to provide oil to all,” Pradhan said at an event organised to mark the launch of Euro-VI grade petrol and diesel in the national capital.

Fuel pricing is based on a transparent mechanism, he said, attributing the spurt in rates to happening in international market. “When crude oil prices rise, naturally consumer feels a pinch,” he said.

“We are concerned (about the impact on consumers). We are keeping a close eye on the developing international oil scenario,” he said.

He, however, did not offer any hint of a government intervention like cutting excise duty to give relief to consumers.

“Centre and state bank on tax revenues to meet developmental needs. 42 per cent of collections from excise duty (on petrol and diesel) goes to states and out of the remaining 60 per cent is used to fund centre’s share in development schemes in states,” he said. Read More…

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