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‘When will govt listen?’: Rahul takes on Centre over fuel prices
Rahul Gandhi posed the question on oil prices to the Narendra Modi government on a day the Brent crude futures price, the international benchmark, for delivery in June fell to as low as $18.10, its lowest since November 2001. At 1200 GMT, it was down 18% at $20.98.
Former Congress president Rahul Gandhi on Tuesday questioned why the government hadn’t reduced the prices of petrol and diesel, which would have benefitted consumers, when global crude oil prices have fallen to near-record lows at a a time the world is combating the coronavirus crisis. Government officials said such low levels were unsustainable.
Gandhi also took a swipe at the government over reports that rice would be used to make sanitisers
He posed the question on oil prices to the Narendra Modi government on a day the Brent crude futures price, the international benchmark, for delivery in June fell to as low as $18.10, its lowest since November 2001. At 1200 GMT, it was down 18% at $20.98.
“Prices of crude oil have fallen to unexpected levels in the world, yet why is petrol in our country sold at Rs 69, diesel at Rs 62?. It is good that prices have fallen in this disaster. When will this government listen,” Gandhi wrote in a tweet in Hindi.
Fuel prices at the pump haven’t budged since mid-March in India although crude oil has been on the decline because of concerns over the impact of the Covid-19 pandemic on world economies and an oil price war between Saudi Arabia and Russia.
Demand for oil products has slumped amid a lockdown imposed in many economies, including India, to stop the spread of the disease. In India, fuel prices haven’t been cut to allow allowing oil refiners to make up for inventory losses and giving the government room to increase levies on the auto fuels for a second time to reinforce its war chest against Covid-19, government officials have told HT previously,
For the government, the crude price dip means a windfall gain from lower import costs, given India’s dependence on oil imports to meet around 80% of its demand. The gain has been boosted by one hike in excise duty on petrol and diesel by Rs.3 per litre announced in March.
It will be offset by the expenditure the government is incurring on the battle against the coronavirus pandemic, which has led to a 40-day national lockdown. The government has already announced a Rs.1.76 lakh crore economic relief package for the poor and is under pressure to allocate a vastly bigger sum for economic stimulus.
The government is closely monitoring global oil price movements, two officials working with two different economic ministries said on condition of anonymity.Global oil prices are unsustainable at the levels to which they have fallen, they said, adding that the freeze on pump prices would act as a cushion in case of a sudden spurt in crude prices
International oil prices were about $69/barrel in August 2007, but had spiked to $147/barrel by July 2008.
Congress’ chief spokesperson Randeep Singh Surjewala separately wrote in a tweet: “WTI Crude Oil price plunges below USD 0 per barrel! We, the People, are still paying Rs 69.59 for Petrol Rs 62.29 for Diesel (Delhi). Why is Modi Government mum? Will ‘Self Styled Nationalists’ at least now become ‘Rationalists’ and demand relief?”
The reference was to West Texas Intermediate,a US benchmark, whose price for May delivery hit a negative $3.99, after Monday’s dive below $0 for the first time, settling at a negative $37.63 per barrel.
Anotgher Congress spokesperson, Pawan Khera, asked what was holding the government from reducing fuel prices.
“Last night was a historical moment that saw unprecedented fall in prices of international crude oil {futures} as manufacturers have no storage capacity left. Why is government not transferring this reduction in oil prices to end-users like farmers and middle class? This relief will go a long way to help them,” he told reporters through video-conferencing.
Khera said that at a time the country was in the midst of a crisis because of the coronavirus pandemic, the government was still busy making a profit out of crude oil.
“Central excise duty on oil has been increased 12 times in last 6 years that has earned Rs 20 lakh crore. Why has the benefit not been passed on to consumers? Is government fulfilling its obligation by not passing on this benefit to the consumers,” asked Khera.
Gandhi, separately, attacked the government for approving a proposal to convert surplus rice available with the Food Corporation of India (FCI) into ethanol to manufacture alcohol-based hand sanitisers and also for blending with petrol.
“After all, when will India’s poor wake up? You are dying of hunger and they are busy cleaning the hands of the rich by making sanitizers from your portion of rice,” he said in a tweet in Hindi.
The ruling Bharatiya Janata Party (BJP) said the poor need hand sanitizer as much as the rich did.
“FCI had surplus of 27.2 MMT {million metric tonnes}. Even after distributing free ration to 80 cr people for 3 months in advance, we have enough to spare. PDS {public distribution system} is flush. Value added bio products increase farmers’ income,” BJP’s information & technology in-charge Amit Malviya said in a tweet.
On the recent order to use rice to make hand-sanitiser, one of the official who works for the oil ministry said, “This is for the rice that is in surplus and almost rotting. Sanitiser is the need of the hour, it is required in large quantities hospitals and mainly procured by government agencies/hospitals, where it is used for all patients, rich as well as poor. In fact, some states have demanded this policy so that their farmers could get better price for their crops.”
