India’s petroleum minister says he will push for a cut in petrol, diesel prices
The former Indian Foreign Service (IFS) officer also lauded PM Modi for taking a bold decision of the cylinder price cut, which the government said is a gift to sisters on the occasion of Onam and Raksha Bandhan.
In a determined move to alleviate the burden on the common citizen, union minister for petroleum and natural gas, Hardeep Singh Puri on Wednesday (August 30) announced his unwavering commitment to advocate for a reduction in petrol and diesel prices across India.
In an exclusive conversation with CNBC-TV18 managing editor Shereen Bhan, Puri revealed that the central government is set to intensify efforts to encourage state governments to join in the effort to lower fuel prices.
Highlighting the need for a collective approach to combat soaring fuel prices, Minister Puri called upon non-BJP (Bharatiya Janata Party) ruled states to follow the precedent set by both the central government and BJP-ruled states.
He underlined the fact that in both 2021 and 2022, significant reductions in oil prices were successfully implemented, bringing much-needed relief to consumers.
To ease the financial burden on consumers, the central government took significant steps by reducing excise taxes on petrol and diesel. This reduction amounted to Rs 5 per litre for petrol and Rs 10 per litre for diesel, starting from November 4, 2021. Additionally, on May 22, 2022, the central government further lowered excise taxes, reducing them by Rs 8 per litre for petrol and Rs 6 per litre for diesel.
Puri added that the Cabinet's decision to cut the price of a 14.2 kg LPG cylinder by Rs 200 was taken after consultation with Oil Marketing Companies (OMCs).
"Both OMCs and the government have collaborated to make this price cut possible. Have no doubt that OMCs’ good performance in Q1 will continue in Q2."
As per the government, the move is aimed at easing the pressure from the rising cost of living due to inflation.
For the nine crore 60 lakh Ujjwala scheme beneficiaries, the price drop of an LPG cylinder will be Rs 400 — Rs 200 as a price cut and Rs 200 as an existing subsidy. The minister added that average cylinder use has gone up from 3 cylinders to 3.7 cylinders.
He lauded PM Modi for taking a bold decision of the cylinder price cut, which the government said is a gift to sisters on the occasion of Onam and Raksha Bandhan.
"Today, India is one of the large markets for crude, and it's a place for energy, where things are happening. Our E&P is going up, and our transition to green energy is gaining momentum. So there are a lot of people who would want to come in here and partner. Most of the world's largest exploration and production companies have now got ties up here, the green hydrogen story is moving well," he said.
On the upcoming G20 summit on September 9-10 in the national capital, Puri said the global event under New Delhi's presidency shows a resurgent India.
"At the G20 as I said, that the Prime Minister and other colleagues have succeeded in producing a template and it has set the bar so high. I think that's what all other G20 Summit after this are likely to be compared to."
"I think the G20s are occupying much more attention than it would normally do, plus the world is facing three crises, fuel, fuel, food and fertiliser. So, the messaging out of their when the heads of state and government gather and the message which will emanate from there will be not only showing India and India's contribution, but also a resurgent India, the new India in the making the one which is, as I said, literally, on the moon," he added.
Also Read:LPG price cut FAQ: Revised cylinder rates, your eligibility for Ujjwala Yojana subsidy and more
First Published: Aug 30, 2023 3:00 PM IST
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