(TOI)
The government will not go back on reforms in the fuel retail market and the daily revision of petrol and diesel prices introduced from June 16 will continue, oil minister Dharmendra Pradhan said on Wednesday amid growing public clamour for a reduction in Central excise to arrest rising pump prices since July.
Petrol has become costlier by Rs 7 per litre since July, pushing pump prices to their three-year high in cities such as Mumbai as high level of state taxes amplified the impact of rise in international prices.
Though Centre and state both make handsome gains from fuel sales, the continuous rise in pump prices has turned the focus on the Centre raising excise duty on nine occasions between November 2014 and January 2016 to keep part of the savings from falling global crude – and product – prices. These hikes pushed up excise duty on petrol by Rs 11.77 per litre and by Rs 13.47 on diesel. Remaining non-commital on excise cut, Pradhan turned the government’s criticism on its head to make a case for bringing petrol and diesel under GST — something the Centre has been trying hard to do — and indirectly shift the blame on high state taxes.
