1. Petrol, diesel prices rise: BJP comes up with these explanations, says criticism unfair

Petrol, diesel prices rise: BJP comes up with these explanations, says criticism unfair

Under attack from several quarters over the recent rise in fuel prices, BJP has come up with an explainer.

By: | New Delhi | Published: September 15, 2017 11:52 AM
petrol price rise, diesel price rise, petrol diesel price rise, fuel price rise, bjp, price rise bjp, fuel price rise bjp, petrol price rise bjp, dharmendra pradhan Petrol price has increased by Rs 7.3 per litre since July 3. (Reuters image)

Under attack from several quarters over the recent rise in fuel prices, BJP has come up with an explainer. In a tweet on Thursday, the ruling party at the Centre presented seven points to counter the claim that Union government is solely responsible for the fuel price rise. BJP also said, “It is mistakenly reported in some media channels that the price of petrol is highest ever, whereas the all time high retail selling price in Delhi was Rs 76.6 per litre on 14th September 2013.”

Amid the relentless rise in petrol and diesel prices, Union Oil minister Dharmendra Pradhan has also ruled out the demand for government intervention to disrupt the daily revision in petrol and diesel prices.

Here are the 7 points shared by BJP:

  1. Retail selling price (RSP) of petrol and diesel is linked to international product price (FOB prices – Free on Board)
  2. Current international product prices have increased mainly due to the Hurricanes Harvey and Irma in USA; 13% pf US refinery capacity was shut down.
  3. FOB price of petrol in International market increased from US $57.42/bbl in June to US $67.85/bbl on 8th September (18% increase in 3 months)
  4. FOB price of diesel in international market increased from US $57/bbl in June to US 68.32/bbl on 8th September (20% increase in 3 months).
  5. International crude prices have increased by 13% from 1st July to 13th September (US $47.86 to US $53.06)
  6. Many state governments have drastically increased the VAT on petrol/diesel (like Kerala from 26% to 34%, Delhi – from 20% to 27% on petrol).
  7. 42% of excise collections are transferred to state governments for infrastructure and welfare programmes.

Since July, there has been a Rs 7.3 per litre spike in the price of petrol. Pradhan, however, said the reform would continue and remained non-committal on cutting taxes to soften the pinch of price rise since July 3. He also said that the criticism of spike in rates is unfair.

“The government has no business to interfere in day to day operations of oil companies. If at all, efficiency is only areas government will interfere to improve operational efficiency of oil companies,” PTI quoted him as saying after meeting heads of state-run firms.

According to PTI, Pradhan said there was a drop in prices for over a fortnight when the daily price revision was introduced on June 16. But it has been ignored and only “temporary” phenomenon of rising trend is being highlighted.

When asked if the government will cut excise duty on petrol, he said, “That is a call the finance ministry has to take but one thing is very clear – we have to balance the developmental needs with consumer aspirations.”

“We have to fund massive highways and road development plans, railway modernisation and expansion, rural sanitation, drinking water, primary healthcare and education. Allocations on all these heads have gone up significantly. Where do we get resources for these,” added Pradhan.

The Union minister, however, urged the GST Council to consider bring petroleum products under the ambit of Goods and Services Tax. This will help bring the prices down.

  1. A
    Abstract
    Sep 20, 2017 at 7:47 am
    Ache din have finally knocked our doors. Undoubtedly this govt is best in marketing and making fools of ppl through the same.
    Reply
    1. S
      Suzie
      Sep 15, 2017 at 1:04 pm
      We've started cooperation with industrial companies. Forecast and analyse prices of coal, crude oil, gas, and more. Visit our and sign up for 7-day free trial: : exmetrix
      Reply
      1. S
        swamy
        Sep 15, 2017 at 12:28 pm
        Bull , I was Paying highest Rs. 84/ liter for the petrol at the time of UPA when the crude price was 150 dollar.
        Reply
        1. M
          MANOJ KAPOOR
          Sep 15, 2017 at 3:54 pm
          YOU ARE RIGHT, CURRENT GOVT.MAKING FOOL OF GENERAL PUBLIC
          Reply
        2. A
          Ajit Jaiswal
          Sep 15, 2017 at 12:27 pm
          Definitely u r going to pay this in 2019 election.
          Reply
          1. A
            Abstract
            Sep 20, 2017 at 7:49 am
            But..but we don't even have a single, sensible opposition party. Sigh
            Reply

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