PALAKKAD: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Sunday said there were no plans to lower or freeze retail fuel prices in view of the upcoming Lok Sabha elections as the costs are dictated by international and other factors.
“Considering the fact the oil and gas industry has been deregulated, the present trend of fixing prices will continue,” Puri told reporters on the sidelines of the Centre’s Viksit Bharat Sankalp Yatra (VBSY) in Palakkad.
Puri said at the time when there were no elections scheduled and the country was in an economic meltdown while oil prices were high, the Union government had reduced central excise duty on fuel, in November 2021 and then in May 2022.“India is one country where fuel prices have come down in the past few years. BJP-ruled states too have reduced VAT rate,” Puri said.
He said there have been frequent elections in India, while 85% of the crude oil we use is imported. Hence, there is no relation between the two, he said. Asked whether oil supply to the nation will be adversely affected following attacks on ships in the Red sea, Puri said it could not be predicted. “We can only hope it doesn’t. However, the nation has to make alternative arrangements for such an eventuality,” Puri said. When pointed out that fuel prices had not come down in Kerala in two years, Puri said people should question their government for not reducing its share of excise duty.
“Before Rajasthan assembly elections, people were purchasing oil for `12/litre more than neighbouring Uttar Pradesh as the then Congress government did not lower VAT. In Kerala too blame lies with those who did not let it come down,” Puri said.
Without naming any particular state, the minister said some state governments derive revenue by taxing petroleum products and alcohol and hence, will never lower prices of these commodities. Puri said India was now importing oil from 39 countries, which reflected its diversified nature.
“Our imports from Russia have gone up considerably. It was believed that since the West imposed sanctions on Russia, it did not want us to buy oil from there. However, they realised that if India too does not buy oil from Russia, international oil prices will increase twofold. Our purchase from Russia went up as they offered us a discount,” Puri said. He said India will buy oil from whoever it has as “we have a duty towards our consumers.”
“We consume five million barrels of oil per day. Russia is now our largest supplier as we could access the commodity at reasonable rates. Now, other countries have started offering us discount too,” Puri said.
BPCL disinvestment: On whether there were any plans to disinvest BPCL, Puri said it was a highly profitable company and hence, was not up for sale. All oil marketing companies are doing well and are profitable. Why should BPCL be disinvested,” he said.