Oil Minister gives “reasons” to rising fuel prices

On Sunday, Union Minister of Petroleum & Natural Gas and Steel Dharmendra Pradhan said that the key reasons causing spiraling petrol and diesel prices in the world are decreased fuel supply and oil-rich nations wanting more income.

“There are two major reasons for the spike in gasoline prices. The world demand has limited fuel demand and the exporting countries are making less fuel to make more money”. Pradhan told ANI while his visit to examine the site where Prime Minister Narendra Modi is expected to attend a rally in Assam’s Dhemaji on Monday.”We have constantly been encouraging the Organisation of the Petroleum Exporting Countries (OPEC) and OPEC plus nations that it should not happen. We trust there will be a change.” he further added.

Petrol and diesel prices have been rising steadily for even more than 10 days, and the price of petrol has also reached the Rs 100 mark in some states.

Rationalizing the taxes imposed on diesel and petrol, he said that in the aftermath of the Covid-19 pandemic, the Centre and the States are doing separate development work on which they raise taxes, adding that these development plans create jobs.

“Another theory is Covid. We’ve got to do different jobs in production. The tax is collected by the Centre and State governments for this. More jobs would be created by spending on construction work. The government has expanded its expenditures and this budget will accommodate 34 percent additional capital expenditures. Spending would also be boosted by state governments. This is why we need this tax, but the need for balance still remains. I assume that a way can be sought by the finance minister and the state governments,” the minister said.

In an uproar over record petrol and diesel prices, Union Finance Minister Nirmala Sitharaman said Saturday that the Center and state governments would have to work closely on a mechanism to carry retail rates to a fair level.