OMCs may have scope to cut fuel rates, says petroleum minister Hardeep Puri
Nirmala Sitharaman announced an excise duty cut on petrol and diesel. The prices have remained stagnant despite a decline in international crude price over the past one year. The decision of state-run OMCs not to cut oil prices, however, has drawn criticism for the government from the opposition as inflation has been on the rise.
During the interaction, the minister said that the Centre on its part has on two occasions lowered the central excise on petrol and diesel, which was followed by cut in value added tax (VAT) by BJP-ruled states. “The PM personally monitored the situation and on two occasions, he reduced the central excise on petrol and diesel by a significant part. The BJP-ruled states immediately reduced VAT.
The only parts of our political system that talk about high fuel prices are the ones that have not reduced VAT." Citing difference in prices in state capitals with BJP and non-BJP governments, the minister said that the price of petrol in Guwahati stands at ₹98.03 per litre, while that in Kolkata stands at ₹106.03, among other comparisons of states. He also said that the price rise in the past two years in India in the case of petrol has been just 2.36% compared to 50.83% in Pakistan, 30.11% in Bangladesh, 30.15% in the US and so on. For the quarter ended June, OMCs have reported strong profits.
On 28 July, Indian Oil Corporation reported a consolidated net profit of ₹14,735.30 crore in the first quarter of FY23 with a multifold growth during the same quarter last fiscal. Hindustan Petroleum Corporation Limited (HPCL) on 2 August reported a consolidated net profit of ₹6,765.5 crore for Q1. Although petrol and diesel prices, which directly impact the common man’s budget, have remained unchanged, prices of
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