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Fuel prices linked to global oil rates, Centre, states have to handle issue: FM Sitharaman

Sitharaman said, India had to import almost 99% of its petrol and diesel requirements (PTI)Premium
Sitharaman said, India had to import almost 99% of its petrol and diesel requirements (PTI)

  • Petrol and diesel prices on Tuesday surged to all-time high levels as rates were increased again after international oil prices hit the highest mark since 2014. 
  • Petrol price was hiked by 25p a litre and diesel by 30p, according to a price notification of state-owned fuel retailers in New Delhi.

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Prices of petroleum products in the country depend on international oil rates, Union Finance Minister Nirmala Sitharaman said on Tuesday as the fuel prices reached a new high. She further added, the Centre and states have to together handle the issue of their rising cost. 

Petrol and diesel prices on Tuesday surged to all-time high levels as rates were increased again after international oil prices hit the highest mark since 2014. Petrol price was hiked by 25 paise a litre and diesel by 30 paise, according to a price notification of state-owned fuel retailers issued in New Delhi.

Sitharaman said this while replying to a query about the rising prices of petrol, diesel and cooking gas in the country. She was addressing a press conference at the Chhattisgarh BJP office Kushabhau Thakre Parisar. 

Sitharaman said, India had to import almost 99% of its petrol and diesel requirements. Duty and tax on petrol and diesel are not levied only by the Centre. If we use 100 litres (of petrol or diesel), we have to import 99 litres out of it from abroad. According to oil rates abroad, prices (of fuel products) are fixed here. 

"When rate in the (global oil) market changes, it also affects us. The Centre imposes a fixed amount as tax and not the value-added tax (VAT). But state governments levy VAT (on petrol, diesel)," she said. 

“In this structure both the Centre and states impose tax on petrol and diesel. I believe prices are rising and definitely there is a burden on the common people. But both the Centre and states have to handle the issue," she added. 

(With inputs from agencies)

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