Under fire from all quarters due to briskly rising petrol and diesel prices, the government on Wednesday said that a plan is being worked to control the frequent fuel price volatility. The government is still deciding on the long-term solutions on rising fuel prices, Law Minister Ravi Shankar Prasad briefed reporters after a cabinet meet. Further assuaging fears, Ravi Shankar Prasad said that there is a sense of urgency in the government to manage fuel prices and discussions and deliberations are underway. Explaining the rationale behind imposing taxes on fuel, the minister said that the money collected from excise is being used to build infrastructure in the country.
Petrol costs Rs 76.17 per litre in Delhi while diesel sells for Rs 68.34 today. Meanwhile, oil retailers asked the government to review taxation on petrol and diesel to cool down rising prices. There is a need to review taxation on petrol and diesel to provide relief to consumers after rates touched an all-time high, PTI reported citing HPCL Chairman and Managing Director Mukesh Kumar Surana. However, there is no case for going back on benchmarking domestic rates against international prices, he said.
The government is taking increase in fuel prices seriously and working on the situation at the highest level, BJP chief Amit Shah had said on Tuesday. The government will come up with a solution in three-four days, he added.
More than a week after the state-owned oil firms ended a 19-day pre-Karnataka poll hiatus on revising fuel prices, petrol and diesel rates have touched record highs. The petrol price has risen by Rs 2.54 a litre and diesel by Rs 2.41 in the last nine days. “We should find methods to handle (such) situation from time to time,” Surana told reporters.