Dharmendra Pradhan explains why petrol, diesel prices are rising

A steady increase in fuel prices has gathered protests from the Opposition and the public who want answers. Union Petroleum and Natural Gas and Steel Minister, Dharmendra Pradhan, says it is a result of diminishing production by the international market.

"There are two main reasons behind the fuel price rise. 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," he told ANI during his visit to inspect the venue where Prime Minister Narendra Modi addressed a rally in Assam's Dhemaji on Monday.

"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", he continued. "Another reason is Covid-19. We have to do various development work. For this, centre and state governments collect the tax. Spending on development work will generate more jobs. The government 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".

Also read — It's a vexatious issue: FM Nirmala Sitharaman on fuel price hike

Congress leaders and other Opposition members, however, have trained guns against the Centre, blaming it solely for the hike in fuel rates.

Earlier, on Saturday, finance minister Nirmala Sitharaman said, "It’s a very vexatious issue in which no answer except for reducing the price (of fuel) will convince anyone. I know I am trading on an area where whatever I may say to bring the reality into picture will only sound like I’m obfuscating, I’m avoiding the answer, I am shifting the blame…,".

Assam and West Bengal have reduced fuel prices by lowering the taxes levied by state governments on fuel prices. While the Assam government announced a reduction of petrol and diesel prices by Rs 5 per litre, the West Bengal government on Sunday reduced it by Rs 1 per litre.