Why are prices of petrol and diesel increasing? Petroleum minister explains | Latest News India - Hindustan Times
close_game
close_game

Why are prices of petrol and diesel increasing? Petroleum minister explains

By | Edited by Poulomi Ghosh
Feb 22, 2021 01:05 PM IST

In April last year, India had supported the decision of the major oil-producing countries to cut production as there was a sharp fall in demand amid Covid-19 pandemic.

India has urged the OPEC (Organisation of the Petroleum Exporting Countries) and OPEC plus countries to not go for a production cut as that is impacting the fuel price in India, Union petroleum minister Dharmendra Pradhan said on Sunday.

Union petroleum minister Dharmendra Pradhan
Union petroleum minister Dharmendra Pradhan

"There are two main reasons behind the fuel price rise. International market has reduced fuel production and manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer," the minister said.

Hindustan Times - your fastest source for breaking news! Read now.

West Bengal govt reduces tax by Re 1 per litre on petrol, diesel

In April last year, India had supported the decision of the major oil-producing countries to cut production as there was a sharp fall in demand amid Covid-19 pandemic.

Also Watch | How to control soaring petrol & diesel prices? Nirmala Sitharaman answers


For over 10 days, the prices of petrol and diesel are increasing. In Mumbai, petrol is at an all-time high of 97 per litre, while diesel rate crossed 88-mark.

Congress and other opposition parties have been protesting against the Centre for the rising fuel prices while the Centre has said it alone has little role behind the astronomical rise in the price. "It’s a very vexatious issue in which no answer except for reducing the price (of fuel) will convince anyone. I know I am trading on an area where whatever I may say to bring the reality into picture will only sound like I’m obfuscating, I’m avoiding the answer, I am shifting the blame…," finance minister Nirmala Sitharaman said on Saturday.

Two poll-bound states, Assam and West Bengal, have cut fuel prices by lowering the taxes that state governments levy on fuel prices. The Assam government has reduced the prices of petrol and diesel by 5 per litre. The West Bengal government on Sunday announced a reduction of tax by 1 per litre on petrol and diesel.

Recently in Parliament, the minister said that blaming the Centre for the price rise is wrong as states too have increased VAT on fuel.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On