Tuesday, Nov 21, 2017 | Last Update : 12:42 AM IST

Pradhan backs daily price revision, favours bringing petrol, diesel under GST

THE ASIAN AGE.
Published : Sep 13, 2017, 5:08 pm IST
Updated : Sep 13, 2017, 5:08 pm IST

Pradhan said global oil refining capacity has dropped by 13 per cent due to Irma and Harvey.

Petroleum Minister Dharmenda Pradhan on Wednesday defended the daily price revision mechanism calling it rational and transparent.
 Petroleum Minister Dharmenda Pradhan on Wednesday defended the daily price revision mechanism calling it rational and transparent.

Mumbai: Amidst petrol and diesel prices hitting a three-year high, Petroleum Minister Dharmenda Pradhan on Wednesday defended the daily price revision mechanism calling it rational and transparent and said it cannot be changed on a knee-jerk basis.

While petrol prices in Mumbai escalated to Rs 79.48, the highest among the four major cities, the petroleum minister assured that global crude prices are expected to cool down soon.

Petrol prices in various cities. Source: IOC websitePetrol prices in various cities. Source: IOC website

Pradhan attributed the price hike to international crude prices and said global oil refining capacity has dropped by 13 per cent due to Irma and Harvey.

On June 6, the government launched the daily price change mechanism, which has been receiving a lot of flak amidst escalating prices. Defending the system, Pradhan said “Govt has no business to interfere in pricing by oil companies..petrol, diesel prices are deregulated and market aligned”.

A litre of petrol in Delhi on Wednesday was priced at Rs 70.38, while that in Chennai was sold at Rs 72.95, according to the Indian Oil Corporation.

Moreover, so far the fuel prices have been kept outside the ambit of the Goods and Services Tax (GST). Favouring the inclusion of fuel prices under the GST regime, he said “GST is the only way to have a rational price mechanism in petroleum products. There will be tax predictability if petroleum products are brought under GST”.

Tags: daily price change, daily fuel price revision, petrol price rise, oil minister dharmendra pradhan
Location: India, Maharashtra, Mumbai (Bombay)