No in­ter­ven­tion in daily price re­vi­sion: Govt

Millennium Post - - FRONT PAGE -

NEW DELHI: Oil Min­is­ter Dhar­men­dra Prad­han on Wednesday ruled out govern­ment in­ter­ven­tion to dis­rupt the daily re­vi­sion in petrol and diesel prices de­spite Rs 7.3 per litre spike in rates since July, say­ing the re­form will con­tinue.

He how­ever re­mained non­com­mit­tal on cut­ting taxes to soften the blow of re­lent­less rise in prices since July 3, the govern­ment need to fi­nance huge in­fra­struc­ture and so­cial projects has to be bal­anced with con­sumer needs.

Terming the crit­i­cism of spike in rates as un­fair, he said the drop in prices for over a fort­night af­ter the daily price re­vi­sion was in­tro­duced on June 16 has been ig­nored and only “tem­po­rary” phe­nom­e­non of ris­ing trend is be­ing high­lighted. In­dia re­lies on im­ports to meet 80 per cent of its needs and so do­mes­tic fuel rates have been aligned to move­ment of equiv­a­lent prod­uct prices in the international mar­ket since April 2002.

Pre­vi­ously the rates were changed ev­ery fort­night but since June 16 they are re­vised daily, Prad­han said, adding that the daily re­vi­sion im­me­di­ately passes on the ben­e­fit of any re­duc­tion in international oil prices to con­sumers and avoids sharp spikes by spread­ing them in small doses.

“It is high time GST Coun­cil should con­sider bring­ing the petroleum prod­ucts in the ambit of GST,” he said.

While petrol prices have in­creased by Rs 7.32 to reach Rs 70.38 a litre in Delhi, the high­est since Au­gust 2014, diesel rates have risen by Rs 5.36 to Rs 58.72.

Prad­han said the cur­rent prices were not the high­est.

“The all time high re­tail sell­ing price at Delhi of petrol was Rs 76.06 per litre on September 14, 2013,” he said.

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