Why petrol, diesel prices are costing you so much? EXPLAINED

Petrol and diesel prices have increased to an alarming level. Today, petrol price is nearly touching Rs 100 and in some places it had actually crossed. Fuel prices were increased for 12 consecutive days in February, before being steady on Sunday and Monday.

The prices even breached Rs 100-mark in Rajasthan and Madhya Pradesh. Petrol in Delhi has also crossed Rs 90 per litre, while in Mumbai it is being sold at Rs 97 per liter, the most expensive in four metro cities. Amid this continuous hike in prices, Union Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan on Sunday explained the reasons behind the surge in prices.

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He said broadly there are two reasons that are pushing fuel prices in India. "There are two main reasons. The international market has reduced fuel production and manufacturing countries are producing less fuel to gain more profit. This is making the consumer countries suffer," Pradhan told news agency ANI during his visit to inspect the venue where Prime Minister Narendra Modi is scheduled to address a rally in Assam`s Dhemaji on Monday.  

He added, "We have continuously been urging the Organisation of the Petroleum Exporting Countries (OPEC) and OPEC plus countries that it should not happen. We hope there will be a change."

Further, Pradhan justified the taxes levied on petrol and diesel. Saying that the central and state governments are doing development work in wake of COVID-19 pandemic, for which they collect taxes. He added that these projects also generate employment.

"Govt has increased its investment and 34 per cent more capital spending will be done in this budget. State governments will also increase spending. This is why we need this tax but there is also the need for balance. I believe the Finance Minister and state governments can find a way," stated the minister.

(With ANI inputs)