OIL & GAS

Why are fuel prices rising in India? Here’s what oil minister says

Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Monday blamed the recent surge in global crude oil prices for the fuel price hike in India. Noting that petrol and diesel have become costlier in recent times, Pradhan said it is up to the GST Council to decide whether fuel should be brought under the Goods and Services Tax, which, many believe, would substantially bring down prices.

“The prices of petroleum products have gone up. The main reason is that the price of crude oil has gone over USD 70 (per barrel) in the international market. This negatively impacts consumers here, as India imports 80 per cent of its oil requirement,” he said.

The minister was responding to a query raised by reporters about the recent fuel price hike. He was in Gandhinagar to witness the signing of an MoU between the Gujarat government and the Indian Oil Corporation about the expansion of the IOC’s refinery in Vadodara.

Asked about his stand to include fuel in the GST regime as a measure to give respite to citizens from the price rise, Pradhan said he agrees with the idea.

“The price of this commodity is regulated by the global market. As a sector in-charge, I am of the opinion that fuel should be brought under the GST.

Source
India Today
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