Bold Decisions by Prime Minister Credited for Unique Achievement
In a significant revelation, Minister of Petroleum & Natural Gas, Hardeep Singh Puri, announced that India stands out as the only country where fuel prices have decreased over the last 2.5 to 3 years. This rare achievement is attributed to the strategic and farsighted decisions made by Prime Minister Narendra Modi, according to the Minister’s detailed response to a parliamentary question.
Fuel Deregulation and Price Control: A Delicate Balance
During the parliamentary session, Minister Puri elaborated on the deregulation of petrol and diesel prices, which occurred in 2010 and 2014 respectively. He emphasized that deregulation means that fuel prices are now determined by oil marketing companies (OMCs) rather than being set by the government. Despite this shift, the current administration has managed to maintain some of the lowest fuel prices globally.
Challenges of Past Decisions
The Minister reflected on the legacy of oil bonds issued by the previous government, amounting to ₹1,41,000 crores, which now require repayments totaling ₹3,20,000 crores. These financial commitments pose constraints on the government’s ability to influence fuel prices further.
Dealer Margins and Government Mediation
A major point of discussion was the issue of dealer margins. Minister Puri clarified that dealer margins are a commercial matter between OMCs and their dealers. India boasts 90,639 Retail Outlets (ROs), with 81,000 in the public sector and 9,000 in the private sector, primarily operated by Reliance and Nayara. The government is actively facilitating dialogue between OMCs and dealers to reach a reasonable conclusion on margins.
Prime Minister’s Impact on Fuel Prices
Minister Puri underscored the Prime Minister’s direct influence on controlling domestic fuel prices through multiple reductions in excise duties, resulting in significant price drops of ₹13 and ₹16. Additionally, VAT reductions in states governed by the BJP further helped in maintaining lower fuel prices.
Disparity in State VAT Rates
Highlighting the disparity in VAT rates, Puri pointed out that some states ruled by opposition parties have not followed suit in reducing VAT, leading to higher fuel prices in those regions. This disparity underscores the importance of uniform policy adoption across states to benefit the consumers uniformly.
Commitment to Fair Practices
Puri reaffirmed the government’s commitment to fair practices and continued dialogue to address the challenges within the deregulated fuel sector. The government aims to ensure that both consumers and dealers are treated fairly while maintaining India’s unique position in the global fuel market.
In conclusion, Minister Hardeep Singh Puri’s address showcased India’s exceptional management of fuel prices and the government’s ongoing efforts to mediate and maintain fair practices within the sector.
