Petroleum Minister Dharmendra Pradhan stated that the Government will take all possible measure to control fuel prices which raised hopes of duty cuts. This statement came on a day when petrol and diesel prices recorded an all-time high. Mr. Pradhan made this assurance on Sunday.
“The Indian government is sensitive towards the rising prices. Various alternatives are being explored. I hope something will work out soon,” the minister responded to media queries here.
Expressing serious concern over the rising oil prices, Dharmendra blamed, “The unilateral decision of the OPEC (Organization of the Petroleum Exporting Countries) nations to reduce production, political instability in Venezuela and American sanction against Iran” behind the steady rise in fuel prices. “Crude production has reduced by 2.5 million barrel in past some months,” the minister said.
As India is highly dependent on imports for fuel and thus has no control over the international fuel prices the only way to bring them down is to cut the duty on fuel according to Market insiders.
The central government charges excise duty of Rs 19.48 per litre of petrol and Rs 15.33 per litre of diesel. Besides, the state government levy value-added tax, which 26% of the price in Odisha. The dealers take a commission of Rs 3.60 per litre of petrol and Rs 2.52 per litre of diesel.
In Bhubaneswar, a litre of petrol was sold at Rs 75.02 per litre on Sunday. Diesel costs Rs 72.38 per litre.
The government is getting stares and snarls from all four directions as fuel prices affect trade and touch the common man’s finances. Thus with the general elections coming next year, it is critical for the government to lower the fuel prices if they have to come to power again as the economy has already suffered the dual blows of Demonetization and GST.
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