6 non-BJP ruled states have not reduced VAT on petroleum products: Hardeep Singh Puri in Lok Sabha
The minister said prices of petrol and diesel have not been increased by public sector Oil Marketing Companies (OMCs) since April 6, 2022, despite record-high international prices.
FollowPetroleum Minister Hardeep Singh Puri on Thursday (December 15) said that six non-BJP ruled states--West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Kerala and Jharkhand--have not reduced the VAT on petroleum products, leading to higher prices of petrol and diesel there.
Addressing the Lok Sabha, Puri said that the central government has reduced excise duty on petroleum products and some other states, following cues, and reduced their Value Added Tax (VAT).
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The Union minister's comment comes amidst vocal protests by the opposition members. The minister said, currently the petrol price in India is one of the lowest. He said the oil marketing companies together suffered losses of Rs 27,276 crore due to high prices of crude in international markets.
"I suggest MPs from the opposition impress upon their state governments to reduce the VAT so that they can also join the celebrations," he said.
Puri said India imports more than 85 percent of its crude oil requirements. Therefore, the prices of petrol and diesel in the country are linked to their respective prices in the international market.Â
He said the retail prices of petrol and diesel depend on various factors like crude oil purchase price, exchange rate, shipping charges, inland freight, refinery margin, dealer commission, central taxes, state VAT and other cost elements.
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While the average price of the Indian basket of Crude oil increased by 102 per cent (from USD 43.34 to USD 87.55) between November 2020 and November 2022, the retail prices of Petrol and Diesel have increased in India by only 18.95 per cent and 26.5 percent during this period respectively.
The minister said prices of petrol and diesel have not been increased by public sector Oil Marketing Companies (OMCs) since April 6, 2022, despite record-high international prices.
Public Sector Oil Marketing Companies have suffered huge losses on the sale of domestic LPG and to compensate for these losses, the government has recently approved a one-time compensation of Rs 22000 crore to OMCs. Unsatisfied with the minister's reply, members belonging to Congress, DMK, TMC and NCP staged a walkout of the house.
(With inputs from PTI)
