Government says excise duty hike won’t impact consumers, cites global oil trends for stable fuel pricing
The North News
New Delhi, April 7
Union Petroleum Minister Hardeep Singh Puri on Monday announced a Rs 50 increase in the price of liquefied petroleum gas (LPG) cylinders, even as prices of petrol and diesel remain unchanged despite an excise duty hike notification. The revised LPG rates will affect both households under the Pradhan Mantri Ujjwala Yojana (PMUY) and regular consumers.
Speaking at a press conference in New Delhi, Puri clarified that while excise duty on petrol and diesel has been raised by ₹2 per litre as per a Finance Ministry notification, it will not be passed on to consumers. “Let me clarify upfront on the record — this will not affect pump prices,” he stated.
Under the new rates, PMUY beneficiaries will now pay ₹550 per LPG cylinder, up from ₹500, while others will pay ₹853, up from ₹803.
Puri attributed the price stability in petrol and diesel to the inventory practices of India’s oil marketing companies (OMCs). “Though crude oil prices have recently dipped to around $60 per barrel, the OMCs carry inventories with a 45-day lag,” he explained. He noted that crude was averaging $83 per barrel in January and dropped to $75 thereafter, meaning current pricing reflects that earlier cost.
Despite the global volatility in oil prices, Puri said that petrol and diesel rates may eventually be adjusted. “You can legitimately expect prices of petrol and diesel to be moderated by the oil marketing companies in keeping with the global price,” he said, reaffirming the government’s stance on deregulated fuel markets.
The announcement comes at a time when inflation concerns remain high, and fuel prices remain a politically sensitive issue, especially in the run-up to state and national elections.
