Petrol and diesel price will rise again in the coming months, says energy expert Narendra Taneja.
Taneja stated in an exclusive interview with ANI that 86 per cent of our entire oil use is imported and that no government has control over the fuel price. “Both petrol and diesel are de control commodities. In July 2010, Manmohan Singh’s government implemented the deregulation on petrol. In 2014, the Modi government decontrol diesel,” he said
• Other reasons mentioned by Taneja behind fuel price turning volatile
One of the key reasons for the surge in oil costs in the worldwide market, he said, is the pandemic.
The second factor, according to him, is a lack of investment in the oil sector as governments promote renewable/green energy industries such as solar power.
• Taneja’s say on Centre’s decision to decrease excise duty on petrol and diesel
He emphasised that the excise duty rises when oil prices are low and vice-versa. He marked that during the outbreak of COVID-19, oil consumption and sales had fallen by 40%. Later, it was eventually dropped down to 35%. The government’s revenue drops when sales are reduced. However, the pre-Covid sale has resurfaced.
He pointed out the signs of improvement in the GST receipts indicating improvement in the economy. He stressed that the government is in a better situation than it was a few years ago. Since diesel is the foundation of our economy, when the price of diesel rises, the price of everything else rises as well and inflation is a major problem.
To provide more relief and transparency, Taneja suggests petrol and diesel be included in GST.
