Emphasising that the government is taking a “huge hit” on its revenues to shield the common man from high prices, Oil Minister Hardeep Singh Puri said that oil marketing companies (OMCs) are losing ₹24 per litre on petrol and ₹30 per litre on diesel.
The OMCs are facing this loss of revenue because they have not raised the retail prices of petrol and diesel, despite global crude oil prices scaling past $100 a barrel, as the West Asia conflict continues with no clear sight of a ceasefire.
On Friday, the Oil Minister said on X, “Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies (approximately 24 Rs/litre for petrol and 30 Rs/litre for diesel) at this time of sky high international prices are reduced.”
Export tax imposed as global prices surge
At the same time, export tax has been levied as international prices of petrol and diesel have skyrocketed, and any refinery exporting to foreign nations will have to pay export tax, he added.
The Minister pointed out that international crude prices have gone through the roof in the last 1 month, from around $70 per barrel to around $122.
“Consequently, petrol and diesel prices for consumers have gone up all over the world. Prices have increased by around 30-50 per cent in South East Asian countries, 30 per cent in North American countries, 20 per cent in Europe and 50 per cent in African countries,” Puri pointed out.
Government opts to absorb burden to protect consumers
The Modi Government had two choices—either increase prices drastically for citizens of Bharat as all other nations have done, or bear the brunt on its finances so that Indian citizens are insulated from international volatility, he said.
“Prime Minister Narendra Modi in keeping with his government’s commitment of last 4 years since the conflict in Russia-Ukraine started, decided to take a hit on its own finances again to safeguard the Indian citizen,” the Minister emphasised.