Gasoline prices have been rising for almost two weeks now, hitting new highs every day. Amid the surge, Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan on Sunday explained the reason for the price spike.
“There are two main reasons for the rise in the price of fuel. The international market has reduced fuel production and manufacturing countries produce less fuel to earn more profit. It hurts consuming countries,” Pradhan told the ANI news agency during its inspection visit. the place where Prime Minister Narendra Modi is due to address a rally in Assam on Monday in Dhemaji.
He added: “We have constantly urged the Organization of the Petroleum Exporting Countries (OPEC) and OPEC plus countries not to make this happen. We hope there will be a change.”
In particular, the price of gasoline has even crossed Rs 100 per liter in some states.
In addition, Pradhan justified the taxes levied on gasoline and diesel. saying that central and state governments are doing development work in the wake of the COVID-19 pandemic, for which they are collecting taxes. He added that these projects also generate jobs.
“Another reason is COVID. We have to do various development work. For this, the central and state governments collect the tax. Spending on development work will generate more jobs. The government has increased its investments and 34 % additional capital spending will be made in This Budget. State governments will also increase spending. That is why we need this tax, but there is also a need for balance. I think the Minister of Finance and state governments can find a way, ”the minister said.
Amid an outcry over record gasoline and diesel prices, Union Finance Minister Nirmala Sitharaman said on Saturday that the Center and state governments will have to jointly develop a mechanism to bring back the retail prices at reasonable levels.
Prime Minister Narendra Modi is scheduled to inaugurate on Monday the INDMAX unit of the Indian Oil refinery in Bongaigaon, the secondary tank farm of Oil India Limited in Madhuban, Dibrugarh and a gas compressor station in the village of Hebeda, Makum, Tinsukia.
(With ANI inputs)