Govt can reduce petrol price up to Rs25 but won’t do: Chidambaram

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Mr. Chidambaram's tweets come on a day when the Ministry of Petroleum is likely to meet the oil companies to discuss the issue of regular increase in the prices of petrol and diesel since May 12.

"Once petrol and diesel are brought under the ambit of GST, its threshold will change, because right now, taxes upon taxes are levied which increases rates".

Apparently, the OPEC has passed a unilateral decision of reducing the production of crude oils raising their prices in the global market to as much as 80$ per barrel which has increased its demand than its supply. "The central government is with Maharashtra like Himalaya", Fadnavis said while stressing that the center is willing to help the state.

Consumers need not look for any respite in fuel prices, cautioned Mukhtyar. In past 10 days there is consecutive rise in prices of petrol and diesel for which the Narendra Modi government has to face the public and opposition parties who all are demanding corrective measures. In the capital city of Thiruvananthapuram, petrol price was up by 38 paise and diesel by 24 paise.

Indian petrol and diesel prices are benchmarked against Singapore gasoline prices and Arab Gulf diesel prices, which mostly track movements in crude oil prices.

Petrol prices in Delhi breached Rs 77 a litre on Wednesday, recording a fresh high in prices since the last time similar levels were seen in September 2013. Just yesterday, Indian Oil Corp, country's largest fuel retailing giant, reported 40 per cent jump in the March quarter net profit on the back of higher refining margin and inventory gains.

The BJP-led government had in June last year junked a 15-year old practice of revising rates every fortnight and introduced daily revisions which worked well except periods immediately preceding an election. Rates vary from state to state depending on the incidence of local sales tax or VAT.

In April, Pradhan had said the Centre and the state governments have been considering bringing the petroleum products under the ambit of Goods and Services Tax.

The only instance when the Modi government had cut excise duty on petrol and diesel by Rs 2 per litre was in October 2017 at a time when Uttar Pradesh Assembly polls were round the corner. During the Karnataka elections, oil marketing firms had opted for a freeze in prices for 19 days.

India is known for its "high taxing framework" and crude prices are the victim of the same.

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