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Centre asks oil companies to temporarily hold up petrol, diesel price hike

Thursday, April 12, 2018 • Malayalam Comments

Centre asks oil companies to temporarily hold up petrol, diesel price hike

The BJP-led Centre has asked oil companies – HPCL, BPCL and IOCL – to put on hold the periodic hike in the prices of fuel till it takes a stance on the issue in the backdrop of increasing prices of crude oil in the international market.

Price of crude oil has increased considerably since 2014 and one barrel of crude oil is sold for USD 70 in the international market.  India, which imports almost 80% of its annual requirement of fuel, is heavily dependent on the fluctuating crude oil prices in the international market as it fixes its own pries based on global market’s price.

Oil companies have been given the mandate by the BJP-led Centre to increase the cost of petrol and diesel at their will and whenever they feel a hike is justified.  In Delhi, one liter petrol costs Rs.73.98 while diesel costs Rs.64.96 while the same is sold for Rs.76.75 and Rs.68.53 (respectively in the same order) in Chennai. Tax on fuel has been increased steadily by the Centre, resulting in never-ending price hike.

Last June, the Centre dispensed the mode of altering fuel prices every fortnight and instead, it gave the mandate to oil companies to determine the prices of petrol and diesel on a daily basis. For loss of their revenue, it is reported that States/UTs are against brining fuel prices within the ambit of GST.

It is in this backdrop that the Centre has instructed oil companies to put on hold, albeit temporarily and till further orders, the mode of re-determining the prices of petrol and diesel on a daily basis, in view of the steep price at which crude oil is sold in the international market.