Petroleum Minister Dharmendra Pradhan claims price of Petrol Diesel in the Domestic market is linked to international market

Petroleum minister Dharmendra Pradhan has claimed that the  prices of petrol and diesel have gone up after fluctuation in the international markets and will eventually come down. “Due to an increase in prices of crude oil in international markets, consumer price (for petrol and diesel) has risen. This will soften gradually. Global supply was reduced due to Covid in turn affecting production as well,” Pradhan was quoted by the Delhi Newspapers.

Consumer activists say that Nepal which gets its petroluem product supply only from India and petrol prices in Kathmandu is around Rs 70 (Indian rupee value). this shows how the central and state governments vie with each other to tax petrol and diesel unmindful of the commitment they gave to the public that they will sell the petro products at the international prices. The price of brent crude was hovering around 63 US dollars per barrel in the international market considered  not very high warranting such a huge price in the domestic market

Petrol price in India more than neighbouring countries

Price of petrol in India is atleast 25 per cent more than other neighboring countries in the sub continent including Pakistan.

“We are consistently requesting the GST Council to include petroleum products under its purview as it will benefit people. But it is their call to take,” the Oil minister added deflecting the demand from the public to reduce central taxes and cess levied on petrol diesel and LPG.

Petrol and diesel prices have been increasing continuously for more than 10 days and in some states, the price of petrol has even crossed Rs100. Petrol price has already surged past the Rs 100-mark in some places in Rajasthan and Madhya Pradesh, states which levy the highest Value Added Tax (VAT) on the fuel. The price of petrol touched an all-time high of Rs 97 per litre in Mumbai last week and the diesel rate crossed the Rs 88-mark. It was the 12th straight day of price hikes and the largest daily increase since oil companies started to revise rates on a daily basis in 2017.

Petrol and diesel prices were up again in the national capital and stood at Rs 90.83 and Rs 81.32 per litre, respectively on Tuesday. Petrol price was raised by 25 paise while that of diesel by 35 paise. The price of liquefied petroleum 14.2kg domestic cylinder was also raised by Rs 50 per unit in Delhi on February 14, taking the cost of LPG gas to RS  769 per cylinder. It is almost the same price for LPG in all the Metro towns.