Kochi: Facing flak from opposition parties over rising fuel prices, Minister Dharmendra Pradhan on Saturday blamed the artificial price mechanism created by the Oil producing nations for spiralling retail prices of petrol and diesel which have touched an all time high. Noting that India meets 80 per cent of its fuel requirement from oil producing nations, the minister said "we are facing challenges on the price" as the crude oil price was again on a rising trend.
Pradhan, who is here to attend the inauguration of the Petrochemical Park at Kochi Refinery by Prime Minister Narendra Modi on Sunday, said there was a total collapse in demand for petroleum across the world due to the COVID-19 lockdown and petroleum producers had to reduce production.
"Now the economy has revived and India has returned almost to the pre-COVID position. However, the oil producers have not increased production."
"I am sorry to say oil rich countries are not looking into the interest of consuming countries. They created an artificial price mechanism. This is pinching the consuming countries," Pradhan told reporters in response to a query on rising fuel prices in the country.
The minister, however, said recently some initial positive things have been indicated by the oil producing countries.
The minister also said the situation arising out of the COVID-19 crisis contributed to the oil price hike.
He cited the government's increased spending in welfare and developmental programmes to justify the increase in the petroleum products.
"Some components of the petroleum price are coming from the tax regime. We are passing through an unusual phase due to the Covid pandemic."
"The spending of the Union and state governments have gone up.There is a 34 per cent increase in capital expenditure in the budget. But we have to carry forward our economy and we need resources," he said.
His statement came a day after the Congress said it was planning a nationwide protest against increasing fuel prices.
The opposition party has attacked the BJP-led government at the Centre over the soaring prices of diesel and petrol and alleged that it was not willing to lower the excise duty on diesel and petrol to ease the burden on the people.
Pradhan also justified the decision to implement a Rs 6000 crore project at BPCL Kochi refinery ahead of disinvestment, saying the project will facilitate production of niche petrochemicals which are predominantly being imported in the country.
He said this will create new industries and new job opportunities in Kerala.
Pradhan, who is here to attend the inauguration of the Petrochemical Park at Kochi Refinery by Prime Minister Narendra Modi on Sunday, said there was a total collapse in demand for petroleum across the world due to the COVID-19 lockdown and petroleum producers had to reduce production.
"Now the economy has revived and India has returned almost to the pre-COVID position. However, the oil producers have not increased production."
"I am sorry to say oil rich countries are not looking into the interest of consuming countries. They created an artificial price mechanism. This is pinching the consuming countries," Pradhan told reporters in response to a query on rising fuel prices in the country.
The minister, however, said recently some initial positive things have been indicated by the oil producing countries.
The minister also said the situation arising out of the COVID-19 crisis contributed to the oil price hike.
He cited the government's increased spending in welfare and developmental programmes to justify the increase in the petroleum products.
"Some components of the petroleum price are coming from the tax regime. We are passing through an unusual phase due to the Covid pandemic."
"The spending of the Union and state governments have gone up.There is a 34 per cent increase in capital expenditure in the budget. But we have to carry forward our economy and we need resources," he said.
His statement came a day after the Congress said it was planning a nationwide protest against increasing fuel prices.
The opposition party has attacked the BJP-led government at the Centre over the soaring prices of diesel and petrol and alleged that it was not willing to lower the excise duty on diesel and petrol to ease the burden on the people.
Pradhan also justified the decision to implement a Rs 6000 crore project at BPCL Kochi refinery ahead of disinvestment, saying the project will facilitate production of niche petrochemicals which are predominantly being imported in the country.
He said this will create new industries and new job opportunities in Kerala.
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8 Comments on this Story
 | Paridhan Mitra3 hours ago inefficient people never look inside. constantly taxes has been raised since 2014 by BJP. but still Indian people select BJP in 2019. once a mistake but twice a doom. so bear the burnt of your own foolishness. NRIs do cheer for Modi because they know this is the person who could destroy india |
| J C Neil Braganca4 hours ago if increased spending is the reason then be prudent and learn to live within your means. do not burden people just because it's an essential item and you know people will still be forced to buy. this is what monopolies do not government |
| Pramendra Khokher4 hours ago Why is the government banking on supposedly temporary inflated taxes on petrol and diesel ? Why cannot the government tighten its own belt like the rest of the country and sell the family silver ? They are custodians anyways of national resources, not the owners. The public is the real owners of the national resources and also the real bosses of the government but are treated as slaves by the politicians and bureaucrats. |