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No question of going back on oil price deregulation: Oil Minister

09 Oct 2018 Evaluate

Oil Minister Dharmendra Pradhan has said that there was no question of going back on deregulation of oil prices despite the government asking state-owned oil marketing companies to subsidise petrol and diesel by Re 1 per litre. He also said that international oil prices hitting a four-year high of $85 per barrel is a challenge that has resulted in fuel prices continuing to rise despite a one-off excise duty cut and public sector units (PSUs) subsidising fuel.

According to Minister, the combination of rupee depreciation and rise in international oil rates has made imports costlier, resulting in retail pump rates shooting up. He also said that the decision to cut excise duty on petrol and diesel by Rs 1.50 per litre each and ask state oil firms to absorb another Rs 1-a-litre was aimed at giving relief to consumers. He noted that the government was sensitive to consumers and had taken the decision in their interest. On asking oil PSUs to subsidise fuel, he said that the companies have taken the decision to shield consumers from high prices.

Pradhan further said “this is not going back on deregulation. Fuel prices continue to be decided on a daily basis based on factors like benchmark international rate and foreign exchange rate.” He also said that the Centre had done its bit and now states should come forward and cut sales tax or VAT. He noted that many states have done but some who were shedding only crocodile tears over high fuel prices haven't. He does not want to politicise the issue but states must realise their responsibility and cut value added tax (VAT).

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