Dharmendra Pradhan blames artificial price mechanism by oil producing nations for fuel price hike

This is pinching the consumingcountries, Pradhan told reporters in response to a query onrising fuel prices in the country.The minister, however, said recently some initialpositive things have been indicated by the oil producingcountries.The minister also said the situation arising out ofthe COVID-19 crisis contributed to the oil price hike.He cited the governments increased spending inwelfare and developmental programmes to justify the increasein the petroleum products.Some components of the petroleum price are comingfrom the tax regime.

Facing flak from opposition partiesover rising fuel prices, Oil Minister Dharmendra Pradhan onSaturday blamed the artificial price mechanism created by theOil producing nations for spiralling retail prices of petroland diesel which have touched an all time high.

Noting that India meets 80 per cent of its fuelrequirement from oil producing nations, the minister said ''weare facing challenges on the price'' as the crude oil price wasagain on a rising trend.

Pradhan, who is here to attend the inauguration of thePetrochemical Park at BPCL Kochi Refinery by Prime MinisterNarendra Modi on Sunday, said there was a total collapse indemand for petroleum across the world due to the COVID-19lockdown and petroleum producers had to reduce production.

''Now the economy has revived and India has returnedalmost to the pre-COVID position. However, the oil producershave not increased production.'' ''I am sorry to say oil rich countries are not lookinginto the interest of consuming countries. They created anartificial price mechanism. This is pinching the consumingcountries,'' Pradhan told reporters in response to a query onrising fuel prices in the country.

The minister, however, said recently some initialpositive things have been indicated by the oil producingcountries.

The minister also said the situation arising out ofthe COVID-19 crisis contributed to the oil price hike.

He cited the government's increased spending inwelfare and developmental programmes to justify the increasein the petroleum products.

''Some components of the petroleum price are comingfrom the tax regime. We are passing through an unusual phasedue to the Covid pandemic.'' ''The spending of the Union and state governments havegone up.There is a 34 per cent increase in capital expenditurein the budget. But we have to carry forward our economy and weneed resources,'' he said.

His statement came a day after the Congress said itwas planning a nationwide protest against increasing fuelprices.

The opposition party has attacked the BJP-ledgovernment at the Centre over the soaring prices of diesel andpetrol and alleged that it was not willing to lower the exciseduty on diesel and petrol to ease the burden on the people.

Pradhan also justified the decision to implement aRs 6000 crore project at BPCL Kochi refinery ahead ofdisinvestment, saying the project will facilitate productionof niche petrochemicals which are predominantly being importedin the country.

He said this will create new industries and new jobopportunities in Kerala.PTI TGB BNADMINISTRATOR BNADMINISTRATOR