Govt increase, decrease in prices of petrol, diesel 'market-determined': Dharmendra Pradhan
By TIOL News Service
NEW DELHI, FEB 10, 2021: PETROL and diesel prices fluctuate on a daily basis in the international market and there is no government proposal to reduce taxes, said Petroleum Minister Mr Dharmendra Pradhan in the Rajya Sabha on Wednesday.
Following the rate revision, petrol prices were raised by 26-30 paise a litre and diesel prices by 24-29 paise per litre across major metros. In the capital, petrol will now cost Rs. 87.60 a litre, seeing a 30 paise hike, while diesel increased by 25 paise to land at Rs. 77.73 a litre. In Mumbai, petrol is nearing Rs. 95 per litre while diesel stands at Rs. 84.63 per litre.
Replying to questions about the rise in prices, the minister said the government has little to do with the petrol, diesel prices as they are dependant on international crude oil price.
Sharing details of the Indian basket of crude oil, he said, "Prices of petrol and diesel have been made market-determined with effect from June 26, 2010 and October 19, 2014, respectively."
The public sector Oil Marketing Companies (OMCs) take appropriate decision on pricing of petrol and diesel in line with international product prices and other market conditions.
"The OMCs have not only increased but also decreased the prices of petrol and diesel in line with changes in international prices and rupee dollar exchange rate," he added.
The yearly average price of petrol and diesel at Delhi market, as per Indian Oil Corporation, was Rs. 79.12 per litre for petrol and Rs. 72.31 per litre for diesel in 2020-21, till February 2. For comparison, petrol had been Rs. 61.59 per litre in 2015-16, while diesel was Rs. 47.01 per litre.
Mr Pradhan also added that the prices are not controlled by the Centre as both the State and the Central governments use taxes as a means of resource collection to meet their welfare commitments.