You are here: Home » Markets » Commodities » Energy
Business Standard

Fuel price hike: Pradhan blames it on global crude oil price surge

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.

Crude Oil | Fuel prices

Press Trust of India  |  Ahmedabad 

Dharmendra Pradhan

Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Monday blamed the recent surge in global 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 the fuel should be brought under the Goods and Services Tax, which, many believe, would substantially bring down the prices.

"The prices of petroleum products have gone up. The main reason is that the price of 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 in 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. But, it will be done only when members of the GST council reach a consensus on it. It is the GST Council which will take a collective decision about it," he said.

Earlier in the day, Congress leader Rahul Gandhi hit out at the Centre over the rise in petrol prices, and said the waves of tax collection epidemic are continuously coming.

His remarks came as petrol prices in several cities crossed Rs 100 and were nearing the mark in Delhi.

"The process of unlocking has started in many states. While paying the bill at the petrol pump, you will see the rise in inflation by the Modi government. The waves of tax collection epidemic are continuously coming," Gandhi said in a tweet in Hindi.

The Congress has been critical of the government over the rising prices of petrol and diesel.

The opposition party has also been demanding that petrol and diesel be brought under the purview of the GST regime.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, June 07 2021. 15:21 IST