Fuel prices will stay high, govt won’t step in

There seems to be no respite for consumers from skyrocketing petrol and diesel prices, as petroleum minister Dharmendra Pradhan on Wednesday said the government would not intervene to keep fuel prices down.

Mr Pradhan said it wasn’t in the public interest for the government to intervene in the day-today business of the oil marketing companies. The minister said the petroleum ministry’s analysis showed that the daily revision in petrol and diesel prices was in the long-term interest of consumers as it was the most transparent and reassuring methodology. He claimed the government had market-linked petroleum product prices in the interest of consumers and said multiple hikes in excise duty by the Centre since 2014 on fuel helped in funding welfare programmes in the country.

Analysts say the government can easily reduce petrol and diesel prices and give relief to people by cutting excise duty on these fuels. However, some sections of the government are reluctant to do so as it is an easy way for them to mop up revenue when economic growth is slowing down (impacting tax

The government cannot change fuel pricing on a kneejerk basis... The government will not interfere in the dayto-day functioning of the OMCs

— Dharmendra Pradhan Petroleum minister

generation) and because the finance ministry has set a tight fiscal deficit target.

The government had, between November 2014 and January 2016, raised excise duty on petrol and diesel nine times to take away the gains arising from falling international oil prices. In all, duty