“In India today, we have one of the lowest fuel prices, and this is the only country where prices have actually decreased in the last 2.5-3 years. This achievement is attributed to the bold, ambitious, and farsighted decisions taken by our Hon’ble Prime Minister,” said Minister of Petroleum & Natural Gas, Shri Hardeep Singh Puri. Today, in a detailed response to a starred question in Parliament, Shri Puri provided a comprehensive overview of the status of petrol and diesel deregulation in India, dealer margins, and the impact of government policies on fuel prices.
Minister Shri Hardeep Singh Puri highlighted that the deregulation of petrol and diesel prices occurred in 2010 and 2014. He emphasized that deregulation implies that fuel prices are determined by the oil marketing companies rather than being set by the government.
Reflecting on the decisions made by the previous government, Minister Shri Puri mentioned the floating of oil bonds worth ₹1,41,000 crores, which today necessitate payments amounting to ₹3,20,000 crores. He asserted that the current government is committed to ensuring fair fuel prices but is constrained by the deregulated nature of the sector.
The Minister also addressed the issue of dealer margins, which was the focal point of the parliamentary question. He explained that the determination of dealer margins is a commercial contractual matter between public sector Oil Marketing Companies (OMCs) and their dealers. He noted that India currently has 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.
Shri Puri assured that the government is facilitating dialogue between OMCs and dealers to reach a reasonable conclusion on the matter of dealer margins. He also called for a fact-check on global fuel prices, underscoring that the government has managed to control domestic prices due to the Hon’ble Prime Minister’s actions, including reducing excise duties on two occasions, which lowered prices by ₹13 and ₹16 respectively. Additionally, VAT reductions in BJP-governed states further contributed to price control.
Shri Puri concluded by highlighting the disparity in VAT rates across states, particularly pointing out that some states ruled by opposition parties, have not complied with similar reductions, leading to higher fuel prices in those regions.
The government remains committed to ensuring fair practices and maintaining dialogue to address issues in the deregulated fuel sector.
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MN