New Delhi: Union Petrol Minister Dharmendra Pradhan on Sunday hinted that after recent price cuts in petrol and diesel, there will be further reduction in fuel prices. Pradhan said this in Kolkata ahead of the next phase of polling in West Bengal. The fuel prices were left frozen on February 27, after the Election Commission announced the dates for Assembly polls in 4 states and 1 UT. However, the prices were reduced in three small installments and now are retailing at Rs 90.56 for one litre of petrol while diesel is sold at Rs 80.87/litre in the national capital.
The prices which reduced by roughly 60 paise, have since stayed steady bringing much relief to the middle class while economic activities in the country started gaining momentum.
“In the last few days, Petrol, diesel and LPG prices have started to fall now. Now they will further fall in the coming days. We had said earlier that we will transfer benefit to the end customers if the international crude prices fall,” he further added,” the price of LPG (Liquefied Petroleum Gas) has begun falling, it will reduce further in the future.”
The LPG prices, on April 1, also fell by Rs 10. Now 14.2 kg cylinder retails for Rs 809 down from Rs 819 in Delhi.
The government-run oil marketing companies (OMCs) like Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – revise the domestic oil retail price taking into account the fluctuations of global crude rates and foreign exchange rates.
Currently, 85 per cent of India’s crude demands are met by imports which makes it vulnerable to any change in the international crude rates. Besides the crude rate, the central and state excise duly also plays a huge role in fuel prices. Almost two-thirds of the price of both petrol and diesel comes from these taxes.
As per the Union Government’s data, the tax collection has increased by 300 per cent between 2014-15 and April-Jan 2021 on petrol, diesel and natural gas, according to Union Minister of State for Finance Anurag Thakur’s written reply in the Lok Sabha.
The excise duty collected in 2014-15 for petrol stood at Rs 29,279 crore which by April 2020-Jan 2021, shot up to Rs 89,575 crore. As for diesel, in the corresponding period, the tax collection rose from Rs 42,881 crore to Rs 2.04 lakh crore. However, for natural gas, the collection fell from Rs 1,998 crore to Rs 919 crore.