Republic World | Union Minister Hardeep Singh Puri Explains Reasons Behind Fuel Price Hike In Lok Sabha

Jul 26,2021

Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday briefed the Lok Sabha on the issue of rising petrol prices. Hardeep Singh Puri has said that the prices of petroleum products are determined after the deregulation of the sector back in 2010 during the tenure of the UPA government. In addition, he stated that the pricing is determined based on world marker prices. 

Union Minister Hardeep Puri on rising fuel prices 
The Petroleum Minister added that over 85 per cent of petroleum products are imported. He further informed the House that the world market prices are determined by the producing and exporting countries. He stated that if one litre of petrol costs Rs 40, then the petroleum companies make four rupees. He added that the Central Government imposes an excise of Rs 32 per litre. Moreover, he asserted that state governments raise taxes on it.

"Sometimes, the state governments raise taxes sometimes, as high as 39 per cent. As for the question of the GST, the Constitution clearly says after the last amendment that it is the GST Council that will determine petrol and diesel will be covered by the GST," said Hardeep Puri

He added that the recommendation for the same should come from the GST Council. Countering the opposition, Hardeep Singh Puri remarked that in spite of the excise that the Centre collects, it is providing free meals to over 80 crore citizens under the Pradhan Mantri Garib Kalyan Yojana.

"We are also providing free vaccines to 80 crore Indian citizens, Minimum Support Price (MSP) of 30 to 70 per cent of all major crops since 2014 which benefitted the farmers. Over 10 crore farmer families have benefitted under PM-Kisan Samman Nidhi Yojana," said Hardeep Puri

Opposition protests against fuel price hike 
Several opposition parties have been protesting against the Centre over the rising fuel prices. Earlier, several Opposition party MP's including Congress MP DK Suresh, TMC MP Derek O’Brien and others cycled to the Parliament on the first day of the Monsoon Session to protest against the rising prices of diesel and petrol. Speaking about the protest, DK Suresh, said, "I am traveling via bicycle because petrol price is too much. It's difficult for a common man to survive with 15-20% inflation". 

The Opposition parties including Congress and All India Trinamool Congress has given various notices in both Rajya Sabha and Lok Sabha on the opening day of the Monsoon Session. Some of the issues include a hike in diesel and petrol prices, LPG, and other commodities. On Monday, Left parties and Telugu Desam Party (TDP) held separate protests in Vijayawada against rising fuel prices.