Fuel prices have been rising continuously for more than 10 days. In some states, the price of petrol has made a century.
Amid rising fuel prices in the country, Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan on Sunday quoted- “low fuel production by manufacturing countries to gain more profits” as one of the main reasons for the price hike.
“The two main reasons behind the rise in fuel prices are:
- The international market has reduced fuel production, and
- Manufacturing countries are producing less fuel to gain more profit.
This is making the consumer countries suffer,” Pradhan said to ANI while on a visit to inspect the place where PM Modi is about to address a rally in Assam’s Dhemaji.
He further added that, “We have been constantly urging the Organization of Petroleum Exporting Countries (OPEC) and OPEC Plus countries that this should not happen. We hope that there will be a change.”
To give justification on taxes levied on petrol and diesel, he said that the Center and the State are doing various development works in the wake of the COVID-19 epidemic, for which they collect taxes. Adding that these development projects generate employment.
He quoted- “COVID-19 is the second reason. We are going to do various development works in the country. For that, the central and state governments collect taxes. Spending on development works will generate more employment. The government has increased its investment and 34 percent more capital spending will be done in this budget. State governments will also increase spending. This is why we need this tax but there is also the need for balance. I believe the Finance Minister and state governments can find a way”.
On Saturday, Finance Minister Nirmala Sitharaman expressed displeasure over the record-high fuel prices, saying that the central and state governments would have to work together to put in place a mechanism to bring retail rates to a reasonable level.