What Union Government Said On Reducing Petrol, Diesel Prices (image: pixabay)
New Delhi: The government listed the measures it had taken to ensure fair and reasonable petrol and diesel prices for consumers. In the parliament, while answering the question raised by TMC MP Abu Taher Khan, Minister of State for Petroleum and Natural Gas Suresh Gopi explained about the various steps his ministry undertook to reduce petrol and diesel prices.
Following the reduction of Central Excise duty by the Central Government, Rs. 13/litre on petrol and Rs. 16/litre on diesel were reduced in two tranches in November 2021 and May 2022, Minister said. As a result, in the domestic market, the petrol and diesel prices have come down from Rs. 110.04 and Rs. 98.2 per litre in November 2021 to Rs. 94.77 and Rs. 87.67 per litre, respectively (as on 18.11.2024, Delhi prices). The amount was completely passed on to consumers, Minister added.
Also Read | What The Law Ministry Said About Foreign Law Firms, Lawyers Practising In India
Some State Governments has also reduced state (Value Added Tax) VAT rates in order to provide relief to citizens.
Prices of petrol and diesel are market determined and Public Sector Oil Marketing Companies (OMCs) take call on fixing prices of of petrol and diesel. In March, 2024, OMCs has also reduced the retail prices of petrol and diesel by Rs. 2 per litre each, nationwide, Minister added.
Continuing further, Minister said, “Government of India also took several other steps to insulate common citizens from high international prices, which included diversifying the crude import basket, windfall taxes on export of petroleum products, invoking the provisions of Universal Service Obligation to ensure availability of petrol & diesel in domestic market, increasing the blending of ethanol in petrol, etc..”
Recently PSU OMCs have carried out intra-state freight rationalisation, the government said. As per the freight, the retail price disparities in petrol/diesel will be reduced within states.
“This has benefitted consumers located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in form of reduced Petrol and Diesel prices in remote parts within the states. This initiative has also reduced the difference between the maximum and minimum retail prices of Petrol or Diesel within a state,” Minister stated.
