India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices
Amid skyrocketing oil prices, Union Minister Hardeep Singh Puri on Monday said the government will take all required measures in the coming months to ensure that consumers get relief from high fuel prices.
Replying during the Question Hour in the Rajya Sabha, the Minister of Petroleum and Natural Gas also shared that a proposal to bring petroleum products under the Goods and Services Tax was taken up by the GST Council but it “did not find favour”.
India relies on overseas purchases to meet about 85 per cent of its oil requirement, making it one of the most vulnerable in Asia to higher oil prices.
Puri was responding to senior Congress leader Anand Sharma, who said it was agreed upon by the government and the opposition that petroleum products will be eventually brought under GST at the time of its introduction, and sought to know the progress been made in this regard.
“States which are acquiring high revenue from the sale of petrol and petroleum products and if I may also add liquor are normally reluctant to reduce their revenue from these two sources,” said the Petroleum Minister.
However, Puri said “the government will in the coming months also take whatever measures we have to, to make sure that our consumer gets relief to the extent we can”.
Observing that oil prices had shot up from USD 19.56 cents a barrel to USD 130 a barrel at one stage and are currently hovering around USD 109 a barrel, the minister said it is emanating from a war-like situation, apparently referring to the ongoing Russia-Ukraine conflict.
“But within that whatever space we have, vigour space, margin of persuasion, we should continue to exercise that in the interest of the Indian citizen and the consumer,” Puri told the Upper House.
Though the government has deregulated petrol and diesel prices, rate changes have been in the past put on hold by public sector oil companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) for reasons that appear to be non-commercial.
(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.)
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.