Expert anticipates further fuel price rise in coming monthstext_fields
Mumbai: Energy expert Narendra Taneja said that the price of petrol and diesel will increase again in the upcoming months. He added that the prices of oil are not in the control of any government because it is an imported commodity.
"India imports 86% of its total oil use. Both petrol and diesel are decontrol commodities. In July 2010, Manmohan Singh's government implemented the deregulation on petrol. In 2014, the Modi government decontrol diesel," he told ANI.
He added that there is an imbalance in demand and supply. The Covid-19 pandemic is the major reason for the rise in oil prices in the international market. The consumption and sale of oil had come down to 40% during the time of Covid. "But now that sale is back like the pre-Covid era."
Responding to the Centre's move to decrease excise duty on petrol and diesel, he said that the government increased excise duty when the oil prices are low and vice versa.
Mr Taneja observed that there is a lack of investment in the oil sector because the governments are promoting "renewable/green energy sectors like solar power." He added that the price of crude oil can rise by Rs 100 by 2023.
He added that the GST collection is a sign of economic recovery indicating that the government is in a relatively more comfortable position than earlier. "Our economy is based on diesel. If the price of diesel goes up that increases the price of everything. The inflation is high. Considering these things, the government has taken this step," said the expert. He also suggested that including petrol and diesel in GST will help with transparency.